BASF to buy Albermarle coatings unit for USD3.2bn

German chemical producer BASF has agreed to buy US specialty chemicals company Albermarle’s surface treatment division, Chemetall, for $3.2bn.

BASF said Chemetall offers a strong strategic fit for its coatings business, supporting the company’s aim to grow profitably in downstream, innovation and solution-focused businesses.

Markus Kamieth, president of BASF’s coatings division, said: “Chemetall complements our current portfolio by adding the highly attractive surface treatment business to our coatings offerings. We look forward to joining forces with Chemetall’s industry-leading expert team to further advance innovation and know-how-driven surface technologies for our customers around the world.”

Chemetall, which is based in Frankfurt and manufactures customised technology and system solutions for surface treatment, generated sales of $845m in full-year 2015. Meanwhile, BASF’s coatings division achieved global sales of around €3.2bn.

The deal is subject to approval by the relevant authorities and is expected to close by the end of this year.

At 1445 BST, BASF shares flat at €68.00 while Albermarle was up 3.8% to $83.03.