BASF Finalizes Deal to Sell Flocculants Business to Solenis for Mining

BASF is streamlining its portfolio by divesting its mining flocculants business to Solenis, a leading specialty chemicals producer based in Wilmington, Delaware. This agreement strengthens Solenis' position in the mining sector, while allowing BASF to focus on its core strategic areas.

BASF's decision to divest its flocculants business to Solenis aligns with its strategic portfolio optimization goals, focusing resources on core areas. The transaction is anticipated to close in the latter half of 2024 pending regulatory approvals. Financial terms of the deal have not been disclosed by mutual agreement between the parties.

The product portfolio includes solutions crucial for solid-liquid separation and material handling in mining, marketed under trademarks like Magnafloc®, Rheomax®, Alclar®, Alcotac®, Jetwet®, Aerowet®, and Alcotech®. With a global footprint, the business maintains a robust presence in key mining hubs worldwide.

Anup Kothari, a member of BASF SE's Board of Executive Directors, emphasized BASF's strategic focus on evaluating its product portfolio, highlighting the importance of seeking strategic partnerships. Regarding their flocculants portfolio for mining applications, BASF has identified Solenis as a suitable partner. Kothari expressed confidence that this divestiture will enhance the future development and promotion of the product range, aligning closely with customer needs.

Caren Hoffmann, Vice President overseeing BASF's mining solutions business, echoed the sentiment, emphasizing the anticipated value delivery to mining customers through the agreement with Solenis. Hoffmann noted that this strategic move will enable BASF to concentrate more effectively on advancing their flotation reagents, as well as expanding innovative solutions in solvent extraction and leaching technologies.

Solenis is a key global provider of specialty chemicals, serving a broad spectrum of water-intensive industries. These industries are major consumers of water and require specialized chemical solutions to optimize their processes. Solenis offers a diversified portfolio of specialty chemicals and services to a wide range of water-intensive industries. Their solutions cater to sectors like pulp and paper, oil and gas, chemical processing, mining, biorefining, and even power generation, along with municipal markets. With a substantial manufacturing infrastructure of 69 facilities strategically located around the world, and a workforce exceeding 16,000 employees, Solenis is well-positioned to deliver effective solutions and support its customers' operations on a global scale.

In 2019, BASF completed the transfer of its paper wet-end and water chemicals business to Solenis, forming a prominent global solutions provider in the paper and water treatment sectors. The agreement also encompassed mid- to long-term supply arrangements and commercial partnerships between BASF and Solenis. This included the supply of polyacrylamide and related products, which involved the divestment of production facilities in Bradford and Grimsby, England, as well as in Kwinana, Australia, further consolidating BASF's strategic focus in key business areas.