Ludwigshafen, Germany-based BASF has announced that it 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, OH. 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.
BASF acquired PolyAd Services as part of the Ciba deal in 2009. There was talk of divesting the company last summer, when BASF had reportedly contacted potential buyers to test whether there was any market interest in the additives company. At that time, CEO Kurt Bock commented to the press that, while PolyAd Services was profitable, a company that was differently positioned in the value chain would probably be better able to build on the platform and expand the business.