Elkem acquiring South Korea’s Basel Chemie

Oslo – Elkem ASA is acquiring Basel Chemie, a “technology-driven” South Korean producer of speciality silicone gels for cosmetics and water repellents for the construction industry.

The $26.9-million (€24 million) transaction is set for completion in September, subject to further approvals, Elkem announced 16 Aug.

The acquisition will strengthen Elkem’s position in downstream specialised 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 to the west of South Korea and a new research and development and office centre in Seoul.

The company has 32 employees and with an annual turnover of $7.7 million (€7 million) has achieved an average EBITDA margin of 28% over the last three years.

“Basel Chemie complements our market offering and brings additional technologies to our speciality 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 specialised silicone segments.

Elkem expects to generate “strong synergies” from the acquisition within R&D, value chain optimisation, complementary product offerings and global market positions, explained Frederic Jacquin, SVP Elkem Silicones.

“The company [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,” he added.

In the building protection segment Elkem holds market positions outside of Korea with significant potential for Basel Chemie’s offering, Jacquin added.