BASF's 3.17 billion euro sale of its chemical building materials business.

On December 21st BASF signed an acquisition agreement with an affiliate of Lone Star, a global private equity firm, for BASF's Chemical Building Materials division. The purchase price for cash and debt-free was 3.17 billion euros. The transaction is expected to close in the third quarter of 2020 and is subject to approval from the relevant competition authority

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more than 7,000 employees in BASF's Chemical Building Materials division, with production sites and sales offices in more than 60 countries, with sales of approximately EUR 2.5 billion in 2018.
Saori Dubourg, executive board member of BASF Europe and head of the Chemical Building Materials business unit, said: "Our goal is to find a new home for the chemical building materials business that can reach its full potential, with the chemical building materials business team able to focus on business growth in a model unique to the construction industry under the management of Lone Star. Donald Quintin
President, Lone Star Europe, said: "BASF's chemical building materials business complements our portfolio and complements our investments in the building materials industry. We attach great importance to BASF chemical building materials experts' recognized expertise and capabilities in the industry, as well as their outstanding achievements in innovative products and impressive research and development capabilities. We look forward to working together on a growth-oriented business model.
BASF said the agreement would have a direct impact on the Group's report: as of 1 January 2019, sales and earnings from the Chemical Building Materials business will no longer be included in the BASF Group's sales and earnings before interest, tax, depreciation and amortization, as well as earnings before interest and tax on special items. Last year's figures will be restated accordingly (BASF Group's 2018 sales are revised to EUR 60.2 billion; 2018 EBITDA is revised to EUR 8.97 billion; and earnings before interest and tax, net of special items, are restated to EUR 6,281 million). Earnings will be presented separately in BASF Group's after-tax earnings ("after-tax gains from termination of operations") until the close of the transaction.
is understood to be a global private equity firm investing in real estate, equity, credit and other financial assets. Since its first fund was established in 1995, Lone Star has organized 20 private equity funds with capital commitments totalling about $85 billion. As a leading private equity firm in building materials and related industries, Lone Star has a strong portfolio in Europe and North America and has extensive international investment experience in this area.
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