Archroma, global leader in specialty chemicals and a portfolio company of US-based private investment firm SK Capital Partners, have entered an agreement to acquire the global textile chemicals business of BASF.

The business being acquired delivers products and technologies across the textile chemicals spectrum, with particular strength in printing, finishing and coating chemicals segments. The acquisition aims at complementing Archroma’s textile dyes and chemicals portfolio, and geographical presence. It will also allow Archroma to reinforce its textile specialties team with a global specialist team that has an especially strong presence in Asia and other high growth markets. Both BASF’s and Archroma’s textile businesses are headquartered in Singapore, close to the Asian textile markets and customers.

“With this agreement, we are bringing together the century-old history of BASF textile chemicals products, technologies and people with Archroma's already strong heritage from Hoechst, Sandoz and Clariant," commented Alexander Wessels, CEO, Archroma. "Archroma already acquired 49% of textile manufacturer M. Dohmen in May 2014, illustrating our company’s determination to become the preferred supplier in our industries."

The transaction comprises the global textile chemicals business, as well as the legal entity BASF Pakistan (Private) Ltd., Karachi. About 290 positions globally are in the scope of the transaction, of which approximately 230 are in Asia.

The transaction is subject to approval by the relevant antitrust authorities and the closing is expected to take place by the end of the first quarter in 2015. The parties have agreed not to disclose the financial details of the transaction.