Acquistion expands BASF's inorganic chemicals line

BASF Corp., the North American affiliate of BASF AG, Ludwigshafen, Germany, is acquiring the Callery Chemical division of Mine Safety Appliances Co. (MSA), Pittsburgh, for $65 million in a move that will broaden BASF's inorganic chemicals portfolio and support its expansion into non-cyclical life science markets globally.

July 29, 2003

2 min read

By OGJ editors

HOUSTON, July 29 -- BASF Corp., the North American affiliate of BASF AG, Ludwigshafen, Germany, is acquiring the Callery Chemical division of Mine Safety Appliances Co. (MSA), Pittsburgh, for $65 million in a move that will broaden BASF's inorganic chemicals portfolio and support its expansion into non-cyclical life science markets globally.

Included in the acquistion are the land and all production facilities at Callery's Evans City, Pa., site, as well as its business relationships and inventory. Officials of the two companies expect to complete the transaction by the end of September, subject to required regulatory approval and other customary closing conditions.

In operation since 1939, Callery is a leading manufacturer of boron and potassium chemicals used in pharmaceutical products and other applications. In 2002, it had sales of $30 million.

"Callery is a perfect fit for BASF," said Wayne Hill, vice-president of BASF's intermediates and inorganics group. "It is an attractive business containing specialty inorganic products that expand our inorganic product line to one of the broadest available. With high technological know-how, production flexibility, and the ability to develop tailor-made solutions, this acquisition can help BASF to quickly expand inorganic product sales in important non-cyclical markets including pharmaceutical, agrochemical and fine chemicals."

Although the pharmaceutical industry is presently Callery's largest market, its products also are used worldwide in agrochemicals, surfactants, adhesives, polymers, electronics, flavors, fragrances, and automobiles. Callery's product line comprises reagents for organic synthesis, including alkali metals and alcoholates used as strong bases and catalysts, borane chemicals used for selective reductions and hydroborations, and new boron products that support the rapidly growing chemistry technology known as Suzuki coupling.

The transaction will allow MSA to focus on its core business; it is a leading manufacturer of personal protective equipment. MSA announced last November that it was exploring the possible sale of Callery Chemical.

BASF plans to continue manufacturing operations at the Evans City plant north of Pittsburgh. Once the transaction closes, Callery will become part of BASF's North American inorganics business and its global inorganics division. Manufacture of MSA's safety products will continue at the Evans City location under a multi-year lease agreement between the parties.