Access Industries completes Basell purchase
Access Industries announced today that its affiliate company Nell Acquisition S.a.r.l. has completed the purchase of Basell from BASF and Shell for €4.4 billion. Len Blavatnik, Chairman and Founder of New York based Access Industries, said, Asked about the future, he added, “I see opportunities to enhance competitiveness, operational efficiency and financial performance through the continued commitment of Basell’s management and employees for whom I have considerable respect and whose commitment to success I fully share.” Basell’s total sales in 2004 were €6.7 billion. It has operations in 21 countries, sales in more than 120 countries and 6,600 employees. Basell is the world’s largest producer of polypropylene and advanced polyolefins and is a leading supplier of polyethylene and catalysts. The company is a global leader in the development and licensing of polypropylene and polyethylene processes. These plastics are used in a wide number of applications, for example in the packaging and automotive industries and for consumer goods. BASF and Shell established Basell in 2000 as a 50/50 owned independently operated joint venture company to consolidate their global polyolefins businesses. Basell achieved competitive advantages such as cost leadership through world-scale plants, and has developed into one of the world leaders in the polyolefins industry under CEO Volker Trautz. “Basell is much stronger today compared to when the company was formed,” Mr Trautz said. “Despite the difficult first years of operation, Basell has already demonstrated success in reducing debt and our presence in three core businesses is a key strength in our industry. On behalf of all our dedicated employees we welcome our new affiliation with Access Industries.” The purchase of Basell is the largest chemical industry LBO to date. It will be financed through a combination of approximately 80% debt and 20% equity. Access Industries was advised on the acquisition by Greenwich Energy Advisors Ltd and Merrill Lynch. Merrill Lynch and CSFB have provided a finance commitment totalling €3.45 billion. Notes to Editors Access Industries is a privately held, US-based industrial holding company with investments worldwide. Access Industries has long-term strategic interests in oil, aluminium, coal, petrochemical, telecommunications, media and real estate. Access Industries is based in New York City, where Len Blavatnik founded the company in 1986. The company also has offices in London, Moscow, Almaty and Astana. Len Blavatnik (48) was born in the Ukraine in 1957. His family settled in the United States in 1978 and he became an American citizen. He is the Chairman and principal shareholder of Access Industries, a company he founded in 1986. He holds a Masters degree from Columbia University and an MBA from Harvard Business School where he is currently a member of the Board of Dean’s Advisors. Mr Blavatnik is also an active philanthropist. He sits on the Advisory Board of the Judge Institute of Management at the University of Cambridge and is Vice Chairman of The Kennan Council at the Woodrow Wilson Center in Washington, D.C. More Facts about the Basell Deal: Basell is organised around three core businesses Polyolefins: comprises Basell’s polypropylene and polyethylene activities, the main markets served by the polypropylene business are fibres, rigid and flexible packaging, consumer goods and automotive; main markets for the polyethylene business are: flexible packaging, containers and bottles, pipes and automotive. Advanced Polyolefins: a global business comprising Basell’s innovative family of speciality polyolefins -- highly engineered polyolefin materials and polypropylene compounds that have a range of performance characteristics superior to traditional polyolefins. The markets in which the Advanced Polyolefins Business competes are: automotive, appliances / white goods, speciality films, pipes, and building & construction Technology: is a global business licensing polyolefin technologies and developing and marketing catalysts. Basell licenses cost-effective and reliable process technologies for all polypropylene and polyethylene grades. For information about Access Industries and Nell Acquisition S.a.r.l. contact: For information about Basell contact: Photos: |