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BASF to sell custom synthesis and parts of API business

Source:Ringier Medical     Date:2015-05-21
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BASF is looking to divest its custom synthesis business and parts of its current active pharmaceutical ingredients (APIs) business to Siegfried Holding AG. 
 
The plan is in line with the company’s long-term goal to devote the pharmaceutical ingredients and services business within the Nutrition & Health division on core expertise in pharmaceutical excipients. The Nutrition & Health segment bundles BASF’s businesses with chemicals that improve the properties of many different end-user products. 
 
The divestiture will cover BASF production sites in Minden, Germany; Evionnaz, Switzerland; and Saint-Vulbas, France, which have an enterprise value of approximately €270 million. The transaction will also cover APIs such as ephedrine, pseudoephedrine, and caffeine. 
 
Meanwhile, BASF’s leading excipient portfolio and selected APIs comprising ibuprofen, omega-3 fatty acids, and polyethylenglycol (PEG), where the company has a leading market position, will remain part of its portfolio.
 
The divestiture, which will require the completion of law-prescribed processes such as consultations with employee representations and the approval of the competent merger control authorities, will affect about 850 positions globally. BASF and Siegfried plan to transfer all affected employees to the acquiring company. BASF is rendering transitional services for a smooth and seamless business transfer to Siegfried for both customers and employees.
 
According to Saori Dubourg, president of BASF’s Nutrition & Health division, “With this divestiture, we are focusing our portfolio on strategic growth areas in the pharmaceutical industry.”
 
Michael Heinz, member of the Board of Executive Directors, BASF SE, and responsible for the Performance Products segment, which includes the Nutrition & Health division, said: “BASF’s highly skilled team and its competitive plants for active pharmaceutical ingredients and custom synthesis will give the new owner a strong market position and will create additional value. This step is in line with BASF’s strategy of actively managing its portfolio and it will further sharpen the focus of the Performance Products segment on growth and high margin core businesses.” 
 
Siegfried CEO Dr. Rudolf Hanko said, “Through this acquisition, Siegfried will reach the critical size to play a leading role in the supplier market as a recognized partner for the pharmaceutical industry. This acquisition demonstrates the growth potential for the Siegfried Group.”
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