BASF to divest flocculants business to Solenis
BASF has entered into an agreement to sell its flocculants business for mining applications to Solenis, a global specialty chemicals producer based in Wilmington, Delaware, U.S.A. This strategic divestment is part of BASF’s ongoing portfolio optimisation efforts, focusing on its core strategic areas. The transaction, pending approval from relevant merger control authorities, is expected to be finalised in the second half of 2024. Financial details of the deal have not been disclosed.
The flocculants business includes products designed for solid-liquid separation and material handling in mining applications, marketed under well-known trademarks such as Magnafloc®, Rheomax®, Alclar®, Alcotac®, Jetwet®, Aerowet®, and Alcotech®. This business has established a strong presence in key mining regions around the world.
Anup Kothari, a member of the Board of Executive Directors at BASF SE, commented, “BASF continuously evaluates its product portfolio to sharpen our strategic focus. The search for strategic partners plays an important role in this. For our flocculants portfolio for mining applications, we have found such a partner in Solenis, and we are confident that the divestiture will further promote and develop the product range in the future to meet customer needs.”
In 2014, Ashland Inc. sold its Water Technologies business to a private equity firm, Clayton, Dubilier & Rice (CD&R), for approximately USD1.8 billion. Following the acquisition, the Water Technologies business was rebranded as Solenis. This move was aimed at creating a more focused and agile organisation dedicated to water treatment and specialty chemicals.
Since its formation, Solenis has expanded its portfolio and global reach through strategic acquisitions and organic growth. The company has positioned itself as a leading provider of specialty chemicals for water-intensive industries, including pulp and paper, oil and gas, chemical processing, mining, biorefining, power, and municipal markets. Today, Solenis operates 69 manufacturing facilities with more than 16,000 employees worldwide.
Caren Hoffmann, vice president heading BASF’s mining solutions business, added, “We are convinced that the agreement with Solenis will deliver significant value to our mining customers. At the same time, we will be able to further concentrate on the continued development and commercialisation of our flotation reagents and expanding our innovative solutions in the field of solvent extraction and leaching.”
This transaction follows a similar move in 2019 when BASF transferred its paper wet-end and water chemicals business to Solenis. The previous agreement also included mid- to long-term supply agreements and commercial relationships for polyacrylamide and polyacrylamide-based products, with production sites in Bradford and Grimsby, England, and Kwinana, Australia.
With this latest divestment, BASF aims to continue its strategic focus on areas with the greatest growth potential, reinforcing its commitment to innovation and sustainability in the chemical industry. BASF’s Performance Chemicals division, which includes the mining solutions business, also covers oilfield chemicals and fuel and lubricant solutions. This divestment may lead to more focused innovation and development within BASF’s remaining portfolio, including fuels and lubricants.
