Debevoise & Plimpton LLP is serving as legal advisor to Solenis and BofA Merrill Lynch, Citi, Credit Suisse and Deutsche Bank are serving as its financial advisors.
Effective May 2, 2018, Solenis and BASF signed an agreement to combine BASF’s paper and water chemicals business with Solenis to jointly create a customer-focused global specialty chemical company. The combined company intends to operate under the Solenis brand and will be positioned to provide expanded offerings and cost-effective solutions for customers in two specialty chemical businesses: paper technologies and industrial water technologies.
The transaction is expected to close around the end of 2018 following regulatory approvals and other customary conditions. Financial terms were not disclosed.
For the pulp and paper industry, the product portfolio of the combined enterprise will cover the entire range of water, process and functional chemistries as well as comprehensive service capabilities. For water-intensive markets, customers will benefit from Solenis’ high-quality service capabilities and BASF’s broad water treatment chemicals platform.
The transaction comprises BASF’s global paper and water chemicals business, including nearly 1,300 employees globally. Upon the close of the transaction and in accordance with local laws, employees will transfer to Solenis.
The transaction includes the paper and water business assets of BASF’s Performance Chemicals unit, including production sites in Bradford and Grimsby, UK; Suffolk, Virginia, USA; Altamira, Mexico; Ankleshwar, India; and Kwinana, Australia. BASF’s paper and water chemicals production plants in Ludwigshafen, Germany, and Nanjing, China, will not transfer and will deliver raw materials pursuant to supply agreements. BASF’s paper coating chemical business is not part of the contemplated transaction.
Solenis and BASF will continue to operate strictly as independent companies until the transaction is complete.
Solenis LLC operates as a specialty chemical supplier. The Company provides cleaners, control agents, processing aids, monitoring systems, odor inhibitors, adhesives, and other products. Solenis serves chemical processing, industrial water, municipal, oil and gas, pulp, printing, biorefining, wood adhesives, and power generation industries worldwide.
Debevoise & Plimpton LLP advised Solenis with a team including Michael A. Diz (Picture), Lawrence K. Cagney, Jeffrey P. Cunard, Peter A. Furci, Gary W. Kubek and Scott B. Selinger, Kyra K. Bromley, Erin Cleary, Stuart Hammer and Timothy McIver, Christopher Anthony, Samantha Berkovits, Spencer K. Gilbert, Kevin R. Grondahl, Anne-Mette Heemsoth, Tigist Kassahun, Franklin L. Mitchell, Alison O’Keeffe, Dr. Andrea Pomana, Ville Rauhala, Helen Tang and Milan Udawatta.
Involved fees earner: Michael Diz – Debevoise & Plimpton; Christopher Anthony – Debevoise & Plimpton; Samantha Berkovits – Debevoise & Plimpton; Spencer Gilbert – Debevoise & Plimpton; Kevin Grondahl – Debevoise & Plimpton; Milan Udawatta – Debevoise & Plimpton; Lawrence Cagney – Debevoise & Plimpton; Franklin Mitchell – Debevoise & Plimpton; Jeffrey Cunard – Debevoise & Plimpton; Tigist Kassahun – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; Gary Kubek – Debevoise & Plimpton; Kyra Bromley – Debevoise & Plimpton; Timothy McIver – Debevoise & Plimpton; Anne-Mette Heemsoth – Debevoise & Plimpton; Andrea Pomana – Debevoise & Plimpton; Scott Selinger – Debevoise & Plimpton; Alison O’Keeffe – Debevoise & Plimpton; Ville Rauhala – Debevoise & Plimpton; Stuart Hammer – Debevoise & Plimpton; Erin Cleary – Debevoise & Plimpton; Helen Tang – Debevoise & Plimpton;
Law Firms: Debevoise & Plimpton;
Clients: Solenis LLC;