Aug 30: Global chemical giant BASF has sold its global photoinitiator business to IGM, a global producer and supplier of radiation curable material. The purchaser of the Photoinitiator business in India is IGM Group B.V, an affiliate of IGM.
In a regulatory filing, BASF India on Monday said, “the company has received information from its parent company, BASF SE, Germany, that globally BASF and IGM Specialties Holding Cooperatief U.A. B.V, The Netherlands, (IGM), have entered into an agreement for acquisition of BASF’s Photoinitiator business.”
According to IGM, the transaction, which is expected to be completed soon, comprises all assets of the business, including technology, patents and certain trademarks, customer relationships and business related contracts as well as the photoinitiator production site at Mortara, Italy.
Commenting on the deal, Markus Kramer, President of BASF’s Dispersions & Pigments division, said, “this transaction allows BASF to focus on its core resins and additives technologies in the radiation-curing markets. Further, BASF will continue to serve the specific needs of the electronics industry with high-performance photoinitiators”. The financial details of the acquisition were not disclosed by both the companies.
Photoinitiators are used in radiation curing formulations in various industries. End user applications of photoinitiators are coatings for furniture and flooring, as well as links for printing and packaging.
In 2015, the company’s photoinitiator business generated sales of Rs 3.8 crore in India. Shares of BASF were trading at Rs 1,129.95, up 1.37%, on BSE. The Rs 10 face value shares have an EPS of 2.27 and a P/E ratio of -61.52.
For the quarter ended June 30, 2016, the company’s net profit had dipped to Rs 98.10 million from Rs 781.60 million in the same quarter of the previous fiscal.The company has an equity capital of Rs 43.29 crore and a market capitalization of Rs 4,891.28 crore.