Chemicals giant BASF has entered into a pact with an affiliate of Lone Star, a global private equity player, to sell its construction chemicals business for EUR 3.17 billion (around Rs 25,003 crore), according to a regulatory filing.
In a filing to BSE, BASF India Ltd said, "We have now been informed by BASF SE, Germany, parent company, that it has signed a purchase agreement with an affiliate of Lone Star, a global private equity player, for acquisition of BASF's construction chemicals business."
The purchase price on a cash and debt free basis is 3.17 billion euros, the company said.
The transaction is expected to close in the third quarter of 2020, subject to approval of the relevant competition authorities, it said.
BASF's construction chemicals business operates production sites and sales offices in more than 60 countries and generated sales of about EUR 2.5 billion in 2018, with more than 7,000 employees worldwide.
In India, the construction chemicals business, which forms part of the surface technologies segment, has generated sales of Rs 484 crore for the year ended March 31, 2019.
The shares of BASF India were trading at Rs 1,000.80 a piece in morning trade on BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
