International. DIC Corporation, owner of Sun Chemical, confirmed that it has signed a definitive agreement to acquire BASF's global pigment business, known as BASF Colors & Effects (BCE).
The acquisition will expand DIC's portfolio as a global manufacturer of pigments, including those for electronic displays, cosmetics, coatings, plastics, inks and specialty applications.
"Our acquisition of BCE brings together complementary resources and expertise from two recognized leaders in innovation, product management, regulatory leadership, application support and manufacturing," said Kaoru Ino, President and CEO of DIC. "We have outlined a clear growth path for DIC with the aim of increasing our sales to 1 trillion yen (approximately €8 billion) by 2025. In this context, BASF's pigment portfolio is an important strategic addition to meet our objectives more expeditiously. It will allow us to expand our offering as one of the world's leading pigment suppliers and offer our customers even more versatile solutions."
"We have achieved our goal of finding an owner who considers pigments as a core strategic business," said Dr. Markus Kamieth, member of basf SE's Board of Executive Directors responsible for the Industrial Solutions segment. "DIC follows ambitious growth plans and has announced that it will continue to develop the business in the coming years. We are convinced that the pigment business will be able to develop its full potential within DIC."
DIC states that customers will benefit as the acquisition offers a unique opportunity to combine complementary knowledge and best practices to develop innovative innovative solutions for the market. With more than 30 pigment production facilities worldwide between DIC and BCE, the company's pigment portfolio will be able to offer broader product categories related to effect pigments, inorganic pigments, organic pigments, special dyes and pigment preparations.
Yoshinari Akiyama, Chief Executive Officer of DIC and General Manager of the Colour Materials Products Division, states: "The acquisition of BCE is extremely ideal within the DIC pigments business, due to the complementary regional footprint and product portfolio. It is a strategic partner for DIC that aims for high growth and high added value by expanding functional pigments in niche applications. By combining the technological capabilities of both companies, we will continue to create new value and provide it to the market as a leading company in the pigment business."
For Dr. Alexander Haunschild, Senior Vice President and Managing Director of BASF Colors & Effects, BASF's pigment-focused subsidiary, the agreement is an opportunity to continue the growth path started in 2016: "We see DIC as an owner who is willing to invest, committed to innovations and interested in the long-term success of the business."