COLOGNE, Germany—BASF S.E. has signed an agreement to purchase Lanxess A.G.'s polyisobutene business, consisting of mainly intellectual property for a new technology to produce high molecular weight polyisobutene.
Lanxess said it will manufacture the new HM PIB line exclusively for BASF under a long-term toll manufacturing agreement, and BASF will market the product under the name Oppanol N, a BASF brand for HM PIB.
Neither firm would disclose financial terms of the deal or the length of the toll manufacturing agreement. BASF said its other polyisobutene offerings will not be affected. It does not operate any PIB manufacturing facilities in North America.
“The acquired technology provides an excellent opportunity of BASF to jointly grow together with our customers,” Martin Widmann, senior vice president of BASF's Fuel and Lubricant Solutions unit, said in a statement. “The transaction will result in enhanced security of HM PIB supply, and it provides the basis for long-term oriented sustainable growth with high quality products for a broad range of applications.”
A BASF spokesman said the company is a leader in the field of polyisobutene. Capacity constraints have restricted further growth of the global HM PIB market, but the acquisition puts BASF in a position to increase its supply capabilities and provide further security to supply the global market.
“HM PIB is used in a broad range of applications and industries,” the spokesman said in an email. “One example is roofing membranes used within the construction industry. Another example is the use as a raw material for adhesives and sealants.”
Oppanol has strong adhesion properties and well-balanced elasticity, making it suitable for pressure sensitive and hot melt adhesives in addition to many kinds of sealants, the spokesman said. Polyisobutene-based adhesive systems are very effective even on lightly soiled surfaces because of their high-oil absorption capacity and their ability to bind fillers.
BASF said it has more than 75 years of manufacturing PIB. The firm reported sales of more than $82.7 billion in 2014, with about 113,000 employees worldwide.
Lanxess is a specialty chemicals manufacturer that employs about 16,300 in 29 countries with 52 production sites worldwide. It reported 2014 sales of about $9 billion.