OSLO, Norway—Elkem A.S.A. is acquiring Basel Chemie, a technology-driven South Korean producer of specialty silicone gels for cosmetics and water repellents for the construction industry.
The $26.9 milliontransaction is set for completion in September, subject to further approvals, Elkem said in a statement issued Aug. 16.
The acquisition will strengthen Elkem's position in downstream specialized silicones, and give the company access to technologies in attractive end-user silicone segments, Elkem said.
Founded in 1999, Basel Chemie has a production plant near Gunsan, South Korea, and a new research and development and office center in Seoul.
The company has 32 employees, and with an annual turnover of $7.7 million, has achieved an average EBITDA margin of 28 percent throughout the last three years.
"Basel Chemie complements our market offering and brings additional technologies to our specialty portfolio in Asia where we have strong positions in other segments," said Helge Aasen, CEO of Elkem.
Acquiring Basel Chemie, according to Aasen, is in line with Elkem's strategy to take further positions in selected specialized silicone segments.
Elkem expects to generate "strong synergies" from the acquisition within research and development, value chain optimization, complementary product offerings and global market positions, said Frederic Jacquin, senior vice president at Elkem Silicones.
Basel Chemie "has a strong specialties position in the fast-growing innovative Korean cosmetics market, and we will get several synergies of integrating the global marketing offerings," Jacquin added.
In the building protection segment, Elkem holds market positions outside of South Korea with significant potential for Basel Chemie's offering, Jacquin added.