LUDWIGSHAFEN, Germany—BASF S.E. is selling its kaolin minerals business to U.S. performance minerals company KaMin L.L.C., the chemicals giant has announced. Closing of the deal is expected in the second half of 2022, BASF said.
Currently part of BASF's performance chemicals division, the business employs 440 people in North America, Europe and Asia.
The Charlotte, North Carolina-headquartered unit generated sales of $176 million in 2020 and includes production hub with sites in Daveyville, Toddville, Edgar and Gordon in Georgia.
The transaction also includes related mines, reserves and mills in Toomsboro and Sandersville in Georgia, BASF said Nov. 18. Cost of the transaction was not disclosed.
The co-located refinery catalysts operations will continue to be owned and operated by BASF's refinery catalysts business and are not part of the divestiture.
According to BASF's website, kaolin is derived from the mineral kaolinite which comes from the Earth's crust.
It is an aluminum silicate represented as Al2O3-2SiO2-2H2O, and it can be used in a wide variety of applications including rubbers, plastics and wires and cables.
In rubber and plastics, the mineral enhances strength and increases hydrophobicity. It can also be a used as a less expensive alternative to titanium dioxide to achieve sharper colors.
Calcined and surface treated kaolin help improve both the electrical and physical performance of cable, helping save electricity and increase the product's lifespan.
"We have made another important step to focus BASF's portfolio in line with our corporate strategy and found a new owner for whom kaolin minerals are a core strategic business," said Markus Kamieth, member of the Board of Executive Directors of BASF, responsible for the Industrial Solutions segment.
Thomas Kloster, president of BASF's performance chemicals division, said the company's "kaolin minerals business is a well-positioned player in the growing specialty industrial minerals market.
"Joining a global performance minerals player will provide a more conducive environment for longer term profitable growth for the business," he added.
KaMin President and CEO Michael W. Nelson called the acquisition of BASF's kaolin business "a transformative step forward" for KaMin's business strategy.
"The combination of these two complementary businesses allows us to further diversify our company into growth-oriented markets and augment our overall manufacturing and technical capabilities," Nelson said. "By combining BASF's calcine portfolio with KaMin's hydrous products, we will be able to provide a compelling suite of kaolin-based performance mineral solutions to our distributor partners and customers globally."
KaMin is a global performance minerals company headquartered in Macon, Georgia and supplies to industries including building and construction, automotive and catalyst, agriculture, health and beauty, packaging, and specialty and graphic paper.
European Rubber Journal contributed to this article.