Archroma, the Swiss chemicals maker backed by SK Capital Partners LP, is set to acquire the textile operations of BASF SE (FRA: BAS) for an undisclosed price.
Both BASF’s and Archroma’s textile businesses are headquartered in Singapore, which enables the Reinach, Switzerland-based buyer to ship products to its growing Asian customer base more quickly. Inking a deal with BASF will assist Archroma with facing growing competition in Asia, as well.
Salt Lake City, Utah-based Huntsman Corp. (NYSE: HUN), for example, is reportedly moving production lines to Asia.
Archroma, which manufactures a variety of finishing and coating additives to chemical companies, expects to complete the deal in the first quarter of 2015.
The transaction was announced amid an effort by chief executive Alexander Wessels to acquire assets from some of the major players in the chemical industry, such as the $469.5 million deal for Clariant AG assets in 2013.
SK hopes to continue expanding the firm’s position as a supplier to the global fibers market and the U.S. Paper Industry. The New York firm is also invested in Addivant, a company that makes products for the polymers and plastics industry, and TPC Group, which also makes products for the plastics and rubber industries.