BASF, Petroferm, Lubrizol announce portfolio transactions

Petroferm acquires BASF Gurnee Site, Lubrizol acquires BASF silicones business

15-Jul-2003

BASF, Petroferm Inc., and The Lubrizol Corporation today announced the closing of agreements for Petroferm to acquire BASF's Gurnee, Ill., manufacturing site and for Lubrizol to acquire BASF's North American based silicones business.

Terms of the separate transactions are not being disclosed.

Petroferm is acquiring BASF's ester, alkoxylates and silicones surfactant manufacturing site at Gurnee, Ill., one of five U.S. surfactants manufacturing sites that BASF operates, which will be operated by the Petroferm subsidiary, Lambent Technologies Corporation. Lambent will continue to supply BASF with surfactants under the terms of a long-term toll manufacturing agreement.

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"BASF remains committed to the surfactants business in North America. The United States continues to be an attractive market for us and the esters market in Mexico is an important growth area that BASF is pursuing," said Michael Stumpp, Group Vice President, Performance Chemicals, BASF Corporation. "In North America, we will continue to provide our customers with surfactant products and related service in innovative ways. One of the components of our strategy is to make greater use of partnerships, joint ventures and cooperations where it makes economic sense to do so. The transaction involving our Gurnee site is consistent with that approach. At the same time, we have determined that the silicones business is not a strategic fit for BASF in North America and, accordingly, we are exiting this business."

Petroferm Chief Executive Officer Mike Hayes said, "Over the past three years, our Lambent organization has demonstrated that we can be both competitive and profitable in our core markets. We want to continue to grow with our customers' businesses and to be ready with plenty of capacity when the economy eventually recovers. The Gurnee production facility fits our long- term strategy well."

Lubrizol's purchase of BASF's North American based silicones business includes the customer list, MASIL(R) and MAZU(R) trademarks, manufacturing technology and other related intellectual property specifically developed for silicones products in the NAFTA region, and finished goods inventory. The purchase of the silicones business does not include any manufacturing assets.

"We are pleased to have completed this acquisition of the BASF silicone products business," stated Don Bogus, Lubrizol Vice President, Fluid Technologies for Industry "especially the well recognized MASIL and MAZU product lines. The addition of this business expands our foam control additive product line and customer base and the acquisition adds a number of new silicone products to the Lubrizol portfolio for use in other markets beyond foam control."

Alkoxylates and ester surfactants are used in the manufacture of a variety of consumer and industrial products including detergents, cleaning agents, coatings and foods. Silicones are used in manufacture of sealants, caulks and water proofing products.

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