Archroma, a leading producer of textile chemicals, has announced that it has completed the acquisition of the global textile chemicals business of BASF. However, the transaction for the company’s Pakistan-based legal entity, BASF Pakistan (Private) Ltd. will likely close only in August 2015, according to a report published on the ChemEurope portal.
This has been termed as among the biggest deals in recent times in the textile chemicals industry, and with this, Archroma has managed to successfully fortify its position in the market. The company now wields greater influence in the market as a supplier of dyes and chemicals to leading textile and apparel manufacturers worldwide. Archroma is a portfolio entity of SK Capital Partners, which is an American private investment firm.
After it was carved out of Clariant in 2013, Archroma has been in major deals with leading names in the textile chemicals industry. Earlier in 2014, the company also paid a considerable sum for acquiring M. Dohmen, a company engaged in the textile chemicals and dyes business.
Archroma’s strategic interest in BASF stems from the fact that the latter has a textile chemical business with products spanning an entire spectrum. The company has an especially strong portfolio in areas such as textile coating chemicals, printing, and finishing – an aspect that Archroma hopes to cash in on.
Armed with the BASF acquisition, Archroma’s geographical presence now gets an additional boost and its product portfolio will now comprise the various products that BASF has been best known for. The latter has a strong position in Asian markets as well as other high-growth regions.
The combined entity will retain its headquarters in Singapore, which enables Archroma to remain close to the high potential markets in Asia. About 225 employees come under the transaction’s scope. Meanwhile, Archroma also announced that it had signed an agreement that will give it to US$515 million worth of credit facilities.