BASF has signed an agreement to divest PolyAd Services, part of its Plastic Additives business unit, to Edgewater Capital Partners, L.P., a private equity firm based in Cleveland, Ohio. The closing of the transaction is expected to take place in the second quarter of 2014. The parties have agreed not to disclose the financial details of the transaction
PolyAd Services is a stand-alone global business that offers innovative specialty blends and services to solve additive incorporation problems for the plastics compounding and converting industry globally. The business serves a wide spectrum of plastic applications in industries, such as automotive, building and construction, packaging and electronics.
PolyAd Services has grown over the last few years, however for BASF’s Plastic Additives business, the company’s services business model is a niche business that offers a limited channel to market for its product portfolio.
“With the sale of PolyAd Services, our Plastic Additives business will focus even more on our core business areas, light stabilizers, antioxidants and Customer Specific Blends (CSBs), strengthening our ability to better serve the global market as the leading manufacturer of additives worldwide,” said Diego Lopez, Senior Vice President, Performance Chemicals North America.
“Increasing performance and sustainability requirements for plastics in a variety of industries are driving an increased demand for innovative additive solutions for the underlying resins. We see positive future growth prospects for PolyAd Services, building on the expertise and professionalism of the PolyAd team,” said Ryan Meany, Managing Partner, Edgewater Capital Partners, L.P.