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BASF Construction Chemicals business suits private equity fund

Sources: BASF SE, Ludwigshafen, Germany; Lone Star Global Acquisitions, LLC, New York; CP staff

BASF projects a third quarter 2020 closing on the $3.5 billion sale of its Construction Chemicals unit to an affiliate of Lone Star, a global private equity firm with offices in Frankfurt, Germany and New York. A subject of speculation since a late-2018 BASF announcement of plans to shop the business, the transaction will include Master Builders concrete admixture and sister brands deeply rooted in construction, maintenance and retrofit. 

“Our aim was to find a new home for our Construction Chemicals business where it can leverage its full potential,” says BASF Executive Director Saori Dubourg. “Under the umbrella of Lone Star, the Construction Chemicals team can focus on a growth path with an industry-specific approach.”

“[The] business fits very well with our portfolio, complementing our investments in the construction materials industry,” adds Lone Star President, Europe Donald Quintin. “We highly value the industry-wide recognized knowledge and competence of BASF’s Construction Chemicals experts, backed by a strong track record in innovative products and a compelling R&D pipeline.”

Lone Star last surfaced in North American concrete market investments when one of its funds acquired the Hanson Building Products business from HeidelbergCement AG. The late-2015 transaction was followed by a slew of deals in concrete pipe and precast, and ductile iron pipe that groomed Irving, Texas-based Forterra Inc. for an initial public offering the following year. 

 

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