BASF is selling its starch business in Europe to Chemigate, a new company founded by former managers of the starch business in Finland. The transaction, which also includes the cationic reagent business, comprises five production plants at four sites in Finland. Eighty-four employees will transfer to the new company. The purchase price has not been disclosed.
“As the starch business is a regional, stand-alone business offering few synergies with BASF’s paper chemical operations, we have taken the decision to divest this business,” explains Christian Schulz, Vice-President Business Management Paper Coating and Starch Europe. “With the management buyout, we have found a very good solution for the future development of the starch business.”
Seppo Lamminmäki, CEO of Chemigate, adds: “We see attractive opportunities to further improve the business, invest in it and run it successfully. Together with our recent acquisition of the starch based
fixative and dry strength business, this investment enables Chemigate to offer a broad portfolio that also includes starch products and cationic reagents.”
The sale, subject to the approval of antitrust authorities, is expected to close in this quarter.
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