German chemical giant BASF said Wednesday it has agreed to acquire Cognis, a supplier of raw materials for the cosmetics, detergents and cleaners industry, for an equity purchase price of EUR 700 million (US$ 858 million). Including net financial debt and pension obligations, the total amount of the transaction is EUR 3.1 billion (US$ 3.8 billion).
A year after the purchase of Ciba, BASF confirms its intention to diversify its products portfolio. “With the acquisition of Cognis, we are strengthening our portfolio with cyclically robust and profitable businesses and further expanding our position as the world’s leading chemical company,” said Dr. Juergen Hambrecht, Chairman of the Board of Executive Directors of BASF.
With this acquisition, BASF intends to achieve a leading position in personal care ingredients. The closing of the transaction is expected for November 2010 at the latest. The acquisition is subject to clearance by the competent merger control authorities.