Elkem ASA announced that it will acquire Basel Chemie, a Korean producer of speciality silicone gels for cosmetics and water repellents for the construction industry. The companies have agreed an enterprise value of USD 26.9 million for the acquisition. The transaction is subject to final regulatory approvals. Closing is expected by the end of September 2019.
Basel Chemie was founded in 1999 and operates a plant near Gunsan and a research and development and office centre in Seoul, Korea. The company has 32 employees and had an annual turnover of USD 7.7 million in 2018 and an average EBITDA margin of 28 % over the last three years. The company is a downstream silicones producer with a speciality portfolio for both skin care and colour cosmetic applications, and water repellents for the construction industry.
“This acquisition strengthens our position in downstream specialised silicones. Basel Chemie complements our market offering and brings additional technologies to our specialty portfolio in Asia where we have strong positions in other segments. This technology and offering also holds further global potential. Acquiring Basel Chemie is in line with our strategy to take further positions in selected, specialised silicone segments,” said Helge Aasen, CEO of Elkem.
Elkem said it will boost Basel Chemie's specialities through its global sales and distribution network, including access to and integration with offerings to current customers and new markets where Elkem is present. Basel Chemie will make Elkem a more comprehensive and attractive supplier within the cosmetics segment, and has an attractive product offering within building protection which can be leveraged outside Korea. The two companies will strengthen their research and development in both Asia and Europe and integrate their value chains, said Elkem.
“Elkem expects to generate strong synergies from the acquisition within research and development, value chain optimisation, complementary product offerings and global market positions. Basel Chemie's leading position and technologies will reinforce our silicones portfolio for the personal care industry where Elkem has global reach and complementary products. The company has a strong specialities position in the fast-growing innovative Korean cosmetics market, and we will get several synergies of integrating the global marketing offerings. In the building protection segment Elkem holds market positions outside of Korea with significant potential for Basel Chemie's offering,” said Frederic Jacquin, SVP Elkem Silicones.
Founded in 1904, Elkem is a leading supplier of silicon-based materials with operations throughout the value chain from quartz to speciality silicones, as well as attractive market positions in speciality ferrosilicon alloys and carbon materials. Elkem is headquartered in Oslo, Norway, and has 6,200 employees with 27 production sites and sales offices in a total of 28 countries worldwide. In 2018, Elkem had revenues of NOK 25.9 billion (~ EUR 2.6 billion).