Archroma, a global leader in specialty chemicals for the textile, paper and emulsions sectors, has recently closed the acquisition of BASF’s global textile chemicals business.

Archroma, a portfolio company of US-based private investment firm SK Capital Partners, is the result of a corporate carve-out from Clariant in 2013, and their previously acquisition of a stake of the textile dyes and chemicals manufacturer M. Dohmen in 2014.

The BASF business delivers products and technologies across the entire textile chemicals spectrum, with particular strengths in printing, finishing and coating chemicals. The acquisition strategically complements Archroma’s product portfolio and geographical presence.

For instance, both group's textile divisions are clearly focused on strong technology developments and are constantly developing new and more sustainable products. Referring to markets BASF has developed a very strong presence in Asia (China, India and Pakistan) while Archroma is already well established in the American markets, especially in Mexico, Brazil and Argentina, where they have their own production site and are also getting very good market response. Therefore, thanks to the new acquisition the new conglomerate can increase its presence in Europe while expanding the markets where they are already operating.

The new acquisition will make the two groups reach yearly revenues of about USD1.7 billion (at present the textile division of Archroma accounts for USD 1 billion). They expect that the new conglomerate will register an average growth of about 2% above local GDP.

The only entity that will be further acquired by Archroma will be BASF Pakistan Ltd. of Karachi, Pakistan, which is expected to be finalized in August 2015.