On July 6, BASF and Clayton, Dubilier & Rice signed an agreement to sell Solenis to Platinum Equity, a California private equity firm founded in 1995. The transaction means that Solenis’ corporate value is US$5.25 billion, including approximately US$2.5 billion in net debt, subject to adjustment at the close of the market.
Since February 1, 2019, BASF holds 49% of Solenis shares and uses the equity method to calculate its shares in the company; 51% of the shares are held by funds managed by the management of Clayton, Dubilier & Rice and Solenis . Subject to the approval of the relevant authorities, the transaction is expected to be completed before the end of 2021.
Solenis has more than 5,200 employees and provides services to customers in water-intensive industries by helping them solve complex water treatment and process improvement challenges. In 2019, BASF transferred its paper wet end and water chemicals business to Solenis, becoming the world's leading solution provider for the paper and water treatment industry. In the fiscal year ending September 30, 2020, the company is headquartered in Wilmington, Delaware, with sales of $2.8 billion.
As part of the transaction announced today, BASF and Clayton, Dubilier & Rice will completely withdraw their investment in Solenis. The transaction does not affect any existing medium and long-term supply agreements and commercial relationships between BASF and Solenis. According to these agreements, BASF will continue to supply products to Solenis or purchase products from Solenis.
