Merck Acquires Leading Manufacturer of Effect Pigments in China
Merck KGaA announced that it has acquired Suzhou Taizhu Technology Development Co. Ltd., a supplier of effect pigments located in Taicang near Shanghai, China. With total revenues of more than € 14 million in 2008 and 300 employees Taizhu is one of the biggest effect pigments companies in the Chinese market. The acquisition is of high strategic importance to the Merck pigments business.
Within the scope of this transaction, Merck has acquired the production site of Taizhu in Taicang, 40 km from Shanghai, as well as the entire sales and marketing organization in China and abroad for a total consideration of € 28 million.
Klaus Bischoff, Head of the Performance & Life Science Chemicals division at Merck, commented: "The transaction is highly attractive for Merck because Taizhu’s products complement our premium product portfolio with a range that mainly serves the growing value-for-money market segment. In addition, Taizhu’s customer base ideally complements our own. In recent years, Taizhu has built an outstanding reputation as a reliable source of high-quality effect pigments."
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