Solenis takes over BASF business
Solenis, which was formerly part of Ashland, has completed the transfer of BASF’s paper wet-end and water chemicals, after all of the relevant regulatory approvals were received. This creates a company with pro forma sales of €2.4 billion in 2017, about 5,200 employees and six sites in the UK, the US, Mexico, India and Australia.
CEO and president John Panichella said that the company, which will operate under the name Solenis, will be “the leading customer-focused, global solutions provider for the paper and water industries”. BASF retains a 49% minority stake, with 51% owned by private equity firm Clayton, Dubilier & Rice and the Solenis management.
The paper and water chemicals production plants that are strongly embedded in BASF’s verbund sites in Ludwigshafen, Germany, and Nanjing, China, are not being transferred but will supply Solenis with products and raw materials under mid- to long-term supply agreements. BASF’s paper coating chemicals portfolio is not part of the deal.
Subsequently, Solenis signed a long-term agreement to lease the Pavilion Building within the new Avenue North complex in Wilmington, Delaware, including about 8,350 m2 of office space. This will become the firm’s new global headquarters, replacing its current location on the nearby Beaver Valley Road.
CFO Philip Patterson said that Solenis was committed to remaining in Delaware, where its roots are, but is in growth mode and needed to “retain, recruit and add employees to enhance our value proposition and better serve our customers”. It expects to relocate to the new office in Q1 2020, with about 200 employees moving in.