Ibuprofen, omega-3 fatty acids and polyethylenglycol will remain a key part of BASF’s portfolio
BASF has agreed to sell parts of its pharmaceutical ingredients business to Swiss contract drug manufacturer Siegfried Holding for €270m.
The German chemicals company will also sell its custom synthesis business to Siegfried Holding.
The APIs to be divested include ephedrine, pseudoephedrine and caffeine but BASF will retain its excipient portfolio and selected APIs, including ibuprofen, omega-3 fatty acids and polyethylenglycol (PEG), where the company has a leading market position.
The deal also includes the sale of BASF’s production sites in Minden, Germany; Evionnaz, Switzerland; and Saint-Vulbas, France. This move will affect around 850 people globally and the two companies said they intend to transfer all affected employees to Siegfried Holding.
'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,' said Michael Heinz, Member of the Board of Executive Directors, BASF SE.
He added: '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 Rudolf Hanko said: 'Through this acquisition, Siegfried will reach the critical size to play a leading role in the supplier market.'