DIC to Acquire BASF’s Global Pigments Business.

BASF (OTCMKTS: BASFY) is one of the largest chemical producers in the world, having approximately 122,000 employees in the BASF Group. BASF’s pigments business generated sales of approximately €1 billion in 2018. The acquisition of BASF’s pigments business will, thus, broaden DIC’s portfolio as a global manufacturer of pigments, including those for plastics, electronic displays, coatings, cosmetics, inks, and specialty applications. The company sees it as an opportunity to become a world-class pigment supplier by offering customers an even wider range of versatile solutions.

The pigments market, globally, is expected to witness a healthy growth in the coming years. The market is expected to be driven by the rising construction and automobiles sectors in the Asia Pacific as the growth of these industries is fuelling the demand for pigments in the paints and coatings segments. In the coming years, the growth of the market is expected to be catalysed by the growing demand for organic pigments. The demand for specialty pigments and the growth of the automobile sector are further projected to further support the growth of the pigments industry in the coming years.

DIC, a Japanese company listed at the Tokyo Stock Exchange, holds a top share in printing inks, organic pigments, and PPS compounds in the global market. The company generated sales of approximately 800 billion yen in 2018, corresponding to about €6.8 billion. DIC, with its organic pigments and synthetic resins, constitutes a broad portfolio to markets such as automobiles, foods and housing, and electronics. Today, the company is operational in more than 60 countries and territories. The acquisition of BASF’s pigments portfolio serves as an important strategic addition to the company as it contributes to DIC’s aim of increasing its sales to 1 trillion yen, i.e. approximately €8 billion, by 2025. The acquisition will also allow DIC to offer its customers more versatile solutions, and, thus, strengthen its position as one of the foremost pigment suppliers globally.

Moreover, the acquisition of BCE is going to benefit the customers as it brings together the complementary know-how, experience, and expertise of two recognised leaders and provides a unique opportunity to develop ground-breaking innovative solutions for the marketplace. With more than 30 pigment production facilities all over the world between DIC and BCE, DIC’s pigment portfolio will be able to offer a broader range of products, further aiding the production of inorganic and organic pigments as well as specialty dyes. This strategic partnership between DIC and BASF will provide DIC with an opportunity to expand its functional pigments into niche applications, thus achieving high growth rate, along with expanding the company’s regional markets.