BASF has released a statement saying that it has signed an agreement to divest PolyAd Services, which comes under the group’s Plastic Additives business unit, to Edgewater Capital Partners, L.P., a private equity firm based in Ohio, USA. The announcement comes on the heels of the news that the chemicals giant will divest its liquid masterbatch operations to Audia International, in France.
The closing of the PolyAd transaction is expected to take place in the second quarter of 2014. The parties have agreed not to disclose financial details.
PolyAd Services is a stand-alone global business specialised in tackling additive incorporation problems for the plastics compounding and converting industries. The firm’s target markets include automotive, building and construction, packaging and electronics.
PolyAd Services has seen growth in recent years, but nevertheless BASF states that “the company’s services business model is a niche business that offers a limited channel to market for its product portfolio.”
“With the sale of PolyAd Services, our Plastic Additives business will focus even more on our core business areas, light stabilizers, antioxidants and Customer Specific Blends (CSBs), strengthening our ability to better serve the global market as the leading manufacturer of additives worldwide,” said Diego Lopez, Senior Vice President, Performance Chemicals North America.
“Increasing performance and sustainability requirements for plastics in a variety of industries are driving an increased demand for innovative additive solutions for the underlying resins. We see positive future growth prospects for PolyAd Services, building on the expertise and professionalism of the PolyAd team,” said Ryan Meany, Managing Partner, Edgewater Capital Partners, L.P.