18 - Non-Adjusting Events after the Balance Sheet Date

On July 6, 2021, BASF and Clayton, Dubilier & Rice announced the signing of an agreement to sell Solenis to Platinum Equity, a private equity company based in California. The transaction implies an enterprise value for Solenis of $5.25 billion. That amount includes net debt of around $2.5 billion, subject to adjustments at closing. The transaction closing is expected before the end of 2021 and is currently pending approval by the relevant authorities.

BASF transferred its paper wet-end and water chemicals business to Solenis in 2019. Since February 1, 2019, the combined company has operated under the name Solenis UK International Ltd., London, United Kingdom, and offers bundled sales, service and production capabilities across the globe. BASF holds a 49% share in Solenis and reports its share in the non-integral company using the equity method; 51% of the shares are held by funds managed by Clayton, Dubilier & Rice, and by Solenis management. With over 5,200 employees, Solenis serves customers in water-intensive industries by helping them solve complex water treatment and process improvement challenges. In the fiscal year ending September 30, 2020, the company, headquartered operationally in Wilmington, Delaware, generated sales of $2.8 billion.

BASF and Clayton, Dubilier & Rice will fully exit their investment in Solenis. The transaction does not affect any of the existing mid- to long-term supply agreements or commercial relationships between BASF and Solenis. BASF will continue to supply products to or source products from Solenis under these agreements.