BASF Construction Chemicals business now forms MBCC Group
BASF recently closed the divestiture of its Construction Chemicals business to an affiliate of Lone Star, a global private equity firm. The purchase price on a cash and debt-free basis is €3.17 billion, as per the press release. The Construction Chemicals business now forms the newly founded MBCC Group, headquartered in Mannheim, Germany.
“Lone Star has been a professional partner in this transaction and is committed to the future success of the business,” said Saori Dubourg, member of the Board of Executive Directors of BASF SE. “We highly appreciate the tremendous efforts to realise the carve-out and close the deal in such a fast and decisive manner. We wish the Construction Chemicals team much success for the future.”
The divestment of the assets and liabilities of the Construction Chemicals business and the related disposal gain will be reflected in BASF’s financial reporting in the fourth quarter of 2020. Payments received in the context of the transaction until September 30 will be included in cash flows from investing activities in the Q3 2020 statement of cash flows, said the company. On December 21, 2019, BASF and an affiliate of Lone Star had signed a purchase agreement for the acquisition of BASF’s Construction Chemicals business. With around 7,500 employees, the Construction Chemicals business operates production sites and sales offices in more than 60 countries and generated sales of about €2.6 billion in 2019.