Albemarle to sell global surface treatment business to BASF for $3.2bn
US-based Albemarle has signed an agreement to sell its Chemetall surface treatment business to Germany-based BASF for $3.2bn.
Headquartered in Germany, Chemetall operates 21 production sites in more than 20 countries, as well as ten research and development locations and 24 sales offices.
Albemarle president and CEO Luke Kissam said: "The sale of Chemetall reflects Albemarle's continued commitment to maximising shareholder value by investing in the future growth of our high priority businesses, reducing leverage and returning capital to shareholders.
"For BASF, the purchase of Chemetall represents a unique opportunity to acquire an industry-leading surface treatment business with a proven track record of success."
Chemetall develops and manufactures technology and system solutions for surface treatment.
The chemicals protect metals from corrosion, facilitate forming and machining, and allow parts to be optimally prepared for the painting process.
They also ensure proper coating adhesion and can be used in automotive, aerospace, coil, and metal forming industries.
BASF Coatings division president Markus Kamieth said: "Chemetall complements our current portfolio by adding the highly attractive surface treatment business to our coatings offerings.
"We look forward to joining forces with Chemetall's industry-leading expert team to further advance innovation and know-how-driven surface technologies for our customers around the world."
Subject to regulatory approvals and other customary closing conditions, the transaction is slated for completion by year-end.