DIC Corporation to acquire BASF’s global pigments business

DIC Corporation, will acquire Germany-based BASF’s global pigments business, known as BASF Colours & Effects (BCE).

The acquisition will broaden Japan-headquartered DIC’s portfolio as a global manufacturer of pigments, including those for coatings, inks and specialty applications, enabling it to offer its customers an even wider range of versatile solutions.

“Our acquisition of BCE brings together complementary resources and expertise of two recognised leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing,” said Kaoru Ino, president and chief executive officer of DIC.

“We have outlined a clear growth path for DIC with the target to increase our sales to ¥1 trillion yen (approximately US$9.4 billion) by 2025. In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously. It will allow us to expand our offering as one of the leading pigment suppliers globally and provide our customers even more versatile solutions.”

“We have achieved our goal to find an owner who considers pigments a core strategic business,” said Markus Kamieth, member of the board of executive directors of BASF SE responsible for the Industrial Solutions segment. “DIC pursues ambitious growth plans and has announced to further develop the business in the coming years. We are convinced that the pigments business will be able to unfold its full potential within DIC.”

With over 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, specialty dyes, and pigment preparations.

Yoshinari Akiyama, DIC executive officer and general manager of the coloor material products division said: “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 who aims for high growth and high added value by expanding functional pigments into 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.”

“As a long-standing business partner of BASF, we value the expertise and engagement of BASF’s employees in the pigments business,” said Myron Petruch, DIC executive officer and president and CEO of Sun Chemical, a subsidiary of DIC Corporation. “The move improves our pigment footprint in Europe and underscores our commitment to delivering solutions tailored to meet the needs of our customers. It also allows us to compete in the global marketplace more effectively going forward”

In the immediate future, business for customers will remain the same as usual, but the transition is expected to be complete in the fourth quarter of 2020.

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