BASF to acquire Callery Chemical assets
BASF has agreed to pay approximately US$65m (Euro 58m) to acquire certain assets of the Callery Chemical Division of Mine Safety Appliances Company (MSA), of Pittsburgh, Pennsylvania.
BASF has agreed to pay approximately US$65m (Euro 58m) to acquire certain assets of the Callery Chemical Division of Mine Safety Appliances Company (MSA), of Pittsburgh, Pennsylvania.
The transaction, which is subject to regulatory approval, is expected to be completed by the end of the third quarter of 2003.
The deal will broaden BASF's inorganic chemicals portfolio and support an expansion into important non-cyclical life science markets globally while strengthening MSA's focus on its core safety products business, the companies said.
Callery Chemical is a leading manufacturer of boron and potassium chemicals used in pharmaceutical products and other applications and in 2002 had sales of $30m (Euro 27m). The BASF acquisition includes Callery's site at Evans City, Pennsylvania, with the land and all production facilities, business relationships and inventory. BASF plans to continue manufacturing operations at the Evans City plant. Callery will become part of BASF's North American inorganics business and its global inorganics division.
'Callery is a perfect fit for BASF,' said Wayne Hill, group vice president, intermediates and inorganics group, BASF Corporation. 'It is an attractive business containing specialty inorganic products that expand our inorganic product line to one of the broadest available. With high technological know-how, production flexibility, and the ability to develop tailor-made solutions, this acquisition can help BASF to quickly expand inorganic product sales in important non-cyclical markets including pharmaceutical, agrochemical and fine chemicals.'
The pharmaceutical industry is Callery's largest market, but its products are also used worldwide in agrochemicals, surfactants, adhesives, polymers, electronics, flavours, fragrances and automobiles. Its product line comprises reagents for organic synthesis, including alkali metals and alcoholates used as strong bases and catalysts, borane chemicals used for selective reductions and hydroborations, and new boron products that support the rapidly growing chemistry technology known as Suzuki coupling.