BASF completes acquisition of Callery Chemical from MSA
BASF has completed the acquisition of certain assets of the Callery Chemical Division of Mine Safety Appliances Company (MSA), the companies announced today.
Operating since 1939, Callery is a leading manufacturer of boron and potassium chemicals used in pharmaceutical products and other applications. The transaction, which was announced on July 21,2003, broadens BASF's inorganic chemicals portfolio and supports an expansion into important non-cyclical life science markets globally while strengthening MSA's focus on its core safety products business, the companies said.
The acquisition includes Callery's Evans City, Pennsylvania, site with the land, production facilities, certain business relationships, and inventory. BASF paid approximately $65 million for these assets. In 2002, Callery Chemical had sales of $30 million.
"This acquisition expands our inorganic product line globally and provides BASF with one of the broadest portfolios available to service important non-cyclical markets including pharmaceutical, agrochemical and fine chemicals," said Klaus Peter Löbbe, Chairman and CEO of BASF Corporation, the North American affiliate of BASF Aktiengesellschaft.
"Now, our focus is to ensure the quick and effective integration of the Callery operations in order to ensure that customers realize the benefits of this transaction," said Ulrich Bueschges, Director, BASF Regional Business Unit Inorganics NAFTA.
Although the pharmaceutical industry is presently by far Callery's strongest focus, its products are also used worldwide in applications like agrochemicals, surfactants, adhesives, polymers, electronics, flavors, fragrances and automobiles. They consist of reagents for organic synthesis, including alkali metals, 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 - safety products that protect human life and health - according to John T. Ryan III, chairman and chief executive officer of MSA. "Callery has been a valuable part of MSA for more than six decades and has grown significantly over the years because of the efforts of the fine people who work there. However, Callery's business and MSA's safety equipment business have progressed in different directions," Ryan said. "BASF has the resources, marketing expertise and deep knowledge of the chemical business to expand its leadership in specialty inorganic chemicals, to provide an ever greater package of products and services for Callery customers and to generate new opportunities for the Callery associates who continue forward with BASF."
BASF plans to continue manufacturing operations at the Evans City plant, which is located north of Pittsburgh. In addition, MSA's Safety Products manufacturing operations at the site will continue under a multi-year lease agreement between the parties.
MSA (AMEX: MSA) is the largest company dedicated to producing a complete range of equipment and systems for worker and plant protection. A global company with 27 international affiliates, MSA products help protect lives in more than 120 countries. Key offerings include respiratory protective equipment including gas masks and self-contained breathing apparatus, products for head, eye and face protection, hearing protection products, thermal imaging cameras, fall protection equipment, and portable and permanently installed gas detection and monitoring devices. The company has annual sales of US$560 million with its largest market being the fire service industry. For more information, visit www.msanet.com.
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