BASF India Limited has entered into an agreement to divest its stilbene-based Optical Brightening Agents (OBA) business for paper and powder detergent applications to Archroma India Private Limited, a member of the Archroma group, a global leader in colour and specialty chemicals.
The transaction includes stilbene-based OBA product portfolio and the manufacturing unit at Ankleshwar, India, said a BASF statement.
The stilbene-based OBA business is part of BASF’s performance chemicals division and care chemicals division.
The transaction is expected to be completed in the fourth quarter of 2019 is for an aggregate consideration of ₹33.50 crore (including an amount of ₹13.84 crore, which will be kept in escrow for a period of 12 months from the closing date), subject to necessary working capital adjustments, the company said in filing to the exchanges.
In India, the OBA business had generated sales of ₹220 crore during the financial year ended March 31, 2019.
“In line with BASF’s strategy of actively managing its portfolio, this transaction allows us to better fulfill our business potential,” said Narayan Krishnamohan, managing director, BASF India Limited and head, south Asia. “Archroma is a global leader in colour and specialty chemicals. Ensuring a smooth transition of our customers, suppliers and employees to Archroma will be a priority.”
“We are extremely pleased with this opportunity to further consolidate our position as a global leader in the chemical industry by expanding both our supply capacity and application markets,” said Marcos Furrer, president of packaging and paper specialties, Archroma.
“This acquisition will not only allow Archroma to strengthen our OBA supply to customers in the packaging and paper industry, in particular in India and Asia, it will also help us develop our portfolio offering to customers in the detergents market with high performance powder OBAs,” he added.
Archroma is a portfolio company of SK Capital Partners, a private investment firm with focus on the specialty materials, chemicals and healthcare sectors.