DIC Corporation has now completed its acquisition of BASF’s global pigments business – BASF Colors and Effects (BCE).
The acquisition by DIC includes the BCE business and related assets, including technologies, patents and goodwill not included in the share purchase, as well as the shares of 18 individual companies.
Based in Europe and with sites around the world, BCE is a global manufacturer of high-performance pigments, effect pigments (for cosmetics) and specialty inorganic pigments.
Since the announcement of the acquisition in 2019, DIC Group (DIC Corporation and its 100 per cent owned subsidiary Sun Chemical) and BASF have been working together to close the transaction.
DIC President and CEO, Kaoru Ino, says the acquisition supports the company’s new medium-term management plan, which guides its aspirations to become a unique global company that focuses on value transformation and creating new businesses in response to environment, safety and health (ESH)–related issues, as well as to social changes.
Ino said the acquisition brings together the complementary portfolio of technologies, products, manufacturing assets, supply chain and customer service of the two companies to serve customers globally.
“We’re excited to close our acquisition of BCE and expand our product offering as one of the leading pigment suppliers globally,” Ino said.
“BASF’s pigments portfolio is an important strategic addition in expeditiously meeting the goals we’ve outlined, which provide a clear growth path for DIC Group with the target to increase our sales to 1 trillion yen (approximately $12 billion) by 2025.”
Broadens DIC Group’s portfolio
The purchase of BCE is also said to broaden DIC Group’s portfolio as a global manufacturer of pigments, including those for electronic displays, cosmetics, coatings, inks, plastics and specialty applications.
DIC managing executive officer and general manager of the colour material products division, Yoshinari Akiyama, said, “BCE is a strategic partner who aims for high growth and high added value by expanding functional pigments into niche applications. Due to the complementary regional footprint and product portfolio, the acquisition of BCE is ideal within the DIC pigments business.
“Closing this deal enables us to combine the technological capabilities of both companies so we continue to create new value and provide it to the market as a leading company in the pigment business.”
Combined customers to benefit
The companies also said that their combined customers will benefit as the acquisition offers a unique opportunity to bring together their know-how and best practices to develop innovative solutions for the marketplace.
With over 30 global pigment production facilities between DIC and BCE, the company’s pigment portfolio will offer broader product categories related to effect pigments, inorganic pigments, organic pigments, specialty dyes, and pigment preparations.
BASF’s pigment-focused subsidiary BASF Colors and Effects senior vice-president and managing director, Dr Alexander Haunschild, said the agreement will help continue the growth path started in 2016.
“The investments of DIC proves its commitment to innovations and interest in the longer-term success of the business. We’re excited to see BCE continue down a path of growth and success,” he added.
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