BASF has entered an agreement to sell its production site for styrene butadiene dispersions for paper coating production site in Pischelsdorf, Austria, to UK specialty chemicals manufacturer Synthomer’s Austrian subsidiary.
Under the deal, Synthomer will pay €30m as consideration to BASF, as well as take over 42 employees working at the site.
Following the deal, BASF will continue to operate its Ludwigshafen Verbund site and the Hamina site in Finland, the other two paper coating dispersions units of the company in Europe.
The divested unit produces styrene butadiene rubber (SBR), which is primarily used in the paper industry, notably in packaging end-markets.
BASF Paper Coating Chemicals Europe vice-president professor Thomas Schiele said: “This decision helps us improve our competitiveness and creates the conditions necessary to offer products and services to our customers at attractive terms in the future.
“We will continue to supply our Austrian paper customers with the usual range of styrene butadiene and styrene acrylic dispersions combined with technical on-site services and optimised logistics.”
The deal is also expected to strengthen Synthomer’s SBR business and production network for paper/packaging applications and open new opportunities across Europe.
Synthomer CEO Calum MacLean said: “This is another bolt-on acquisition that represents an excellent fit for Synthomer.
“It underscores our long-term commitment to our customers in the paper industry, whilst providing us with an additional site to strengthen our network and stronger access to growing packaging end-markets in Europe.”
The transaction is expected to be completed by late January next year, subject to authorisation from the relevant merger control authorities.