Known as BASF Colors & Effects (BCE), the acquisition of this pigments business is part of an effort to improve DIC’s position in the pigments sector in Europe.

Kaoru Ino, president and chief executive officer (CEO) of DIC, comments: “Our acquisition of BCE brings together complementary resources and expertise of two recognised leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing.

“We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen (approximately £7.8bn) by 2025. In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously.

"It will allow us to expand our offering as one of the leading pigment suppliers globally and provide our customers even more versatile solutions.”

BASF is a German chemical company that operates in more than 80 countries, with its headquarters in Ludwigshafen, Germany.

Aside from pigments, the firm supplies raw materials to agriculture, automotive, construction, energy, and pharmaceuticals.

Yoshinari Akiyama, DIC executive officer and general manager of the Color Material Products Division, says: “The acquisition of BCE is extremely ideal within the DIC pigments business, due to the complementary regional footprint and product portfolio.

“It is a strategic partner for DIC who aims for high growth and high added value by expanding functional pigments into niche applications.

"By combining the technological capabilities of both companies, we will continue to create new value and provide it to the market as a leading company in the pigment business.”

Myron Petruch, DIC executive officer and president and CEO of Sun Chemical, adds: “As a long-standing business partner of BASF, we value the expertise and engagement of BASF’s employees in the pigments business.

“The move improves our pigment footprint in Europe and underscores our commitment to delivering solutions tailored to meet the needs of our customers. It also allows us to compete in the global marketplace more effectively going forward.”

The acquisition brings the total pigment production facilities to over 30 between DIC and BCE, allowing DIC to offer broader product categories related to effect pigments, inorganic pigments, organic pigments, speciality dyes, and pigment preparations.

The acquisition is expected to close by the fourth quarter of 2020.

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