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BASF India, a subsidiary of global chemicals major BASF, has entered into an agreement to divest its stilbene-based Optical Brightening Agents (OBA) business for paper and powder detergent applications to Archroma India for about ₹33.50 crore.
The acquisition amount includes ₹13.84 crore, which will be kept in an escrow account for 12 months from the date of the deal. It will be released on attainment of certain conditions as mutually agreed between the parties, the company said in a statement.
The transaction, which is expected to be completed in the fourth quarter of 2019, includes stilbene-based OBA product portfolio and the Ankleshwar manufacturing unit.
“In line with BASF’s strategy of actively managing its portfolio, this transaction allows us to better fulfil our business potential,” said Narayan Krishnamohan, Managing Director, BASF India and Head, South Asia.
The stilbene-based OBA business is part of BASF’s Performance Chemicals division and Care Chemicals division.
“This acquisition will not only allow Archroma to strengthen our OBA supply to customers in the packaging and paper industry, in particular in India and Asia, it will also help us develop our portfolio offering to customers in the detergents market with high performance powder OBAs,” said Marcos Furrer, President of Packaging & Paper Specialties at Archroma.
Archroma, a global major into colour and specialty chemicals, is a portfolio company of private investment firm SK Capital Partners.
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