BASF Closes Cognis Acquisition

LUDWIGSHAFEN, GermanyOn Dec. 9, BASF completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.à r.l. controlled by Permira Funds, GS Capital Partners and SV Life Sciences. The equity purchase price was 700 million; including net financial debt and pension obligations, the enterprise value of the transaction is 3.1 billion.

Jürgen Hambrecht, Ph.D., chairman of BASFs board of executive directors, commented: "Cognis and BASFs know-how and range of products complement each other very well. The combination will broaden our portfolio of specialty chemicals and boost innovation for our customers."

BASF intends to full integrate Cognis into the BASF Group, with completion of the structural integration targeted for the end of 2011. The acquisition strengthened BASFs position in value-added products for home care and pharma excipients, established a strong position in human nutrition and provided a leading position in personal care ingredients. BASF noted integrating Cognis operations will particularly expand BASFs portfolio of products based on renewable raw materials.

"Our highest priority is to ensure a smooth and seamless integration process while maintaining the highest standards of customer service and product quality," said John Feldmann, Ph.D., a member of BASFs board of executive directors with responsibility for the Performance Products segment. Most of Cognis businesses will be integrated into the divisions of this segment. Cognis will make an important contribution to the growth strategy of our Performance Products segment. We aim to grow two percentage points above the relevant markets and achieve an EBITDA margin of minimum 20 percent as of 2013. The businesses acquired from Cognis will help us to achieve these goals."