LafargeHolcim Is Said to Join Race for BASF Mortars Unit
LafargeHolcim Is Said to Join Race for BASF Construction Unit
(Bloomberg) -- LafargeHolcim Ltd. has joined the bidding for BASF SE’s construction chemicals business, according to people familiar with the matter, as Chief Executive Officer Jan Jenisch seeks to diversify Europe’s largest cement maker.
The Swiss company is competing with several buyout firms, including Bain Capital and Cinven, that were chosen to proceed to the second round of bidding, the people said. Building-materials maker Standard Industries Inc., which has partnered with Blackstone Group LP, was also shortlisted, the people said, asking not to be identified because the information is private.
The latest round of offers could value the division at more than 3 billion euros ($3.4 billion), the people said. Advent International, KKR & Co. and Lone Star Funds have separately been considering a purchase of the BASF unit, the people said. Other companies with existing construction chemicals operations have also shown interest, one of the people said.
Shares of Ludwigshafen, Germany-based BASF gained 2.1% to 65.29 euros at 9:09 a.m. in Frankfurt. LafargeHolcim climbed 2% to 48.62 francs in Zurich.
BASF announced a strategic review of the construction chemicals business in October. The division makes products including grouts, mortars and admixtures, which are added before or after mixing cement to enhance properties like drying times and water content.
LafargeHolcim CEO Jenisch said in May he’s eyeing at least 10 bolt-on assets purchases for 2019 and is confident of reaching the upper end of sales guidance as his revamp of the company starts to take hold. A purchase of the BASF unit would mark a return to an area he knows well from his time at the helm of Swiss building-materials maker Sika AG.
No final decisions have been made, and there’s no certainty the suitors will proceed with binding offers for the business, the people said.
Representatives for Advent, Bain, BASF, Blackstone, Cinven, KKR, LafargeHolcim and Standard Industries declined to comment. Lone Star didn’t immediately reply to emailed queries outside regular business hours.
--With assistance from Myriam Balezou, Dinesh Nair and Tara Patel.
To contact the reporters on this story: Kiel Porter in Chicago at kporter17@bloomberg.net;Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net
To contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, Ben Scent, Ian Fisher
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