WILMINGTON — The growing chemical giant Solenis is doubling down on products used for mineral extraction now that it has acquired BASF’s flocculants business.
Terms of the deal were not disclosed, but Solenis has now substantially grown its own portfolio, as well as its intellectual property, products and experts in flocculants business for mining applications.
For BASF, a German diversified chemical group, the move would focus its vast business divisions, which include chemicals for the plastics industry, catalysts and battery materials, pesticides and herbicides and more.
“We are excited to welcome BASF’s flocculants business into the Solenis family,” Solenis CEO John Panichella said in a prepared statement. “This acquisition aligns with our strategic vision to be the leading provider of specialty chemicals for the mining industry. By combining our expertise and resources, we can deliver even greater value to our customers.”
A decade after global chemical company Ashland had sold off its water division to a private equity firm for $1.8 billion, Solenis has steadily grown its market share through a series of mergers and acquisitions of companies, products or other companies’ portfolios. In 2023, it inked a marquee deal with $4.6 billion deal for cleaning product manufacturer Diversey in one of the biggest deals landed by a Delaware company in recent history.
Solenis specializes in chemistry that can help make facial and bath wipes, hospital-grade disinfectant wipes retain moisture and paper towels absorbent. But it also creates coating for fast-food wrappers and bottle lines on conveyor belts as well as corrosion control chemicals for machines.
Thanks to its deal with BASF, Solenis now has added at least seven trademarked flocculants, a chemical process that causes smaller particles to clump together in a liquid, making them easier to remove. The process, used in water treatment and in the water through an intensive mining process, can help maximize the minerals while reducing the water usage. There is a strong market for mineral extractions through flocculation, largely in part for its cost and energy savings as well as how it meets environmental requirements on the industry.
Solenis already had a portfolio of flocculation products that helped with grinding, dust control and thickening the slurry. But with a new suite of products from a multinational chemical manufacturer with proven results, the Delaware company is able to grow its customer base with international clients in mining applications.
Today, Solenis has 70 manufacturing sites across the globe — each located to strategically lower production costs and to access the local market — and 16,500 employees in all.
In a previous interview with the Delaware Business Times, Panichella said he believes Solenis can continue to grow 1 to 2% through future acquisitions such as the BASF deal, which better positions it to compete in a $85 billion market.
