Access Industries completes Basell purchase
Access Industries announced that its affiliate company Nell Acquisition S.a.r.l. has completed the purchase of Basell from BASF and Shell for EUR4.4 billion.
Len Blavatnik, Chairman and Founder of New York based Access Industries, said, "Basell is a global company with a record of outstanding achievements and innovation. It is another jewel in the Access Industries' portfolio and I am absolutely delighted."
Asked about the future, he added, "I see opportunities to enhance competitiveness, operational efficiency and financial performance through the continued commitment of Basell's management and employees for whom I have considerable respect and whose commitment to success I fully share."
Basell's total sales in 2004 were EUR6.7 billion. It has operations in 21 countries, sales in more than 120 countries and 6,600 employees.
Basell is the world's largest producer of polypropylene and advanced polyolefins and is a leading supplier of polyethylene and catalysts. The company is a global leader in the development and licensing of polypropylene and polyethylene processes. These plastics are used in a wide number of applications, for example in the packaging and automotive industries and for consumer goods.
BASF and Shell established Basell in 2000 as a 50/50 owned independently operated joint venture company to consolidate their global polyolefins businesses. Basell achieved competitive advantages such as cost leadership through world-scale plants, and has developed into one of the world leaders in the polyolefins industry under CEO Volker Trautz.
"Basell is much stronger today compared to when the company was formed," Mr Trautz said. "Despite the difficult first years of operation, Basell has already demonstrated success in reducing debt and our presence in three core businesses is a key strength in our industry. On behalf of all our dedicated employees we welcome our new affiliation with Access Industries."
The purchase of Basell is the largest chemical industry LBO to date. It will be financed through a combination of approximately 80% debt and 20% equity. Access Industries was advised on the acquisition by Greenwich Energy Advisors Ltd and Merrill Lynch.
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