BASF buys renewable materials supplier Cognis

In a deal valued at 3.1 billion euros, material supplier BASF has reached an agreement with Cognis Holding GmbH to acquire the speciality chemical company Cognis for 700 million euros.

The transaction is expected to close the deal in November.

Germany-based Cognis specialises in renewable raw materials for the health and nutrition, cosmetics, detergents and cleaners industries. The company employs approximately 5,500 in 30 countries and posted sales of 2.6 billion euros in 2009.

“With this acquisition, we want to achieve a leading position in personal care ingredients, strengthen our leading position in value added products for home care and establish a strong position in health and nutrition products,” said Dr John Feldmann, member of the board of executive directors of BASF and responsible for the performance products segment.

BASF also hopes to expand its portfolio of products based on renewable raw materials, Feldmann added.

Cognis’ Canadian affiliate, Cognis Canada Corp., is headquartered in Mississauga, Ont.