Sale of Solenis to Platinum Equity Closes
With the receipt of all approvals, BASF and Clayton, Dubilier & Rice (CD&R) have closed the sale of water treatment company Solenis to Platinum Equity. The transfer to the new private equity investor for an enterprise value of $5.25 billion includes net debt of around $2.5 billion.
The buyer and sellers announced the deal this past July. At the time of sale, BASF held 49% of the two-year-old company, the investment group 51%, together with Solenis’ management.
The ownership structure emerged from CD&R’s $1.8 billion purchase of the water chemicals unit of US chemical producer Ashland in 2018. In 2019, the German group folded its water chemicals business into the new business.
BASF said the divestment of its shares in Solenis will be reflected in its financial reporting for the current fourth quarter as net income from shareholdings.
With more than 5,200 employees, Solenis produces mainly specialty chemicals used in water treatment and paper manufacturing. It also makes products for other water-intensive industries including chemical processing, mining and oil production. The Wilmington, Delaware-based US company reported sales of $ 3billion for fiscal year 2021 (Sept. 30).
Author: Dede Williams, Freelance Journalist
