BASF's Cognis Purchase Official

LUDWIGSHAFEN, GermanyBASF has agreed to buy Cognis for 700 million Euros ($855.6 million USD), with a total enterprise value of $3.1 billion including debt and pension obligations. The acquisition is subject to regulatory approval, but it is expected to close no later than November 2010.

With the acquisition of Cognis, we are strengthening our portfolio with cyclically robust and profitable businesses and further expanding our position as the worlds leading chemical company, said Dr. Jürgen Hambrecht, Ph.D., chairman of the board at BASF SE.

Cognis logged 2009 sales of about 2.6 billion ($3.18 million USD) and an EBITDA (earnings before interest, taxes, depreciation and amortization) of 322 million ($393.8 million USD).

Fellow BASF board member John Feldmann, Ph.D., who is also leader of its performance products segment, which is expected to absorb the Cognis business, said BASF hopes the acquisition will help it become the leader in the personal care ingredients market and strengthen our leading position in value added products for home care and establish a strong position in health and nutrition products. By purchasing Cognis, we will in particular expand our portfolio with products based on renewable raw materials, he said. A broader and more attractive offering of products and services combined with our research and development expertise will allow us to become an even more important partner for joint development projects with our customers. This will contribute to making them even more successful.