2024-07-26
classification:Corporate News
25 JULY 2024 – Global New Material International Holdings Limited (“GNMI” or the Group, Hong Kong stock code: 06616), announced today that it has entered into an agreement (“Agreement”) with Merck KGaA, (“Merck”) to acquire Merck’s global surface solutions business (“Surface Solutions”) for EUR 665,000,000 (equivalent to approximately RMB 5,187,000,000 or HKD 5,586,000,000), in cash. The transaction is expected to close (“Closing”) in the course of 2025.
Ertian Su, Chairman of Global New Material International (Center), Belén Garijo, Chair of the Executive Board and CEO of Merck (Right) and Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics (Left), met in Darmstadt, Germany, in regards to GNMI’s acquisition of Surface Solutions, and exchanged gifts.
At the signing ceremony, Su Ertian, Chairman of the Board and CEO of GNMI, Jin Zengqin, Executive Director and Vice President of GNMI, Thomas Mak, CFO of GNMI, KIM Sang Bae, Vice President and CSO of GNMI, LIM Kwang Su, Vice President and Representative Director of CQV, Zhu Chunlin, Chief Integration Officer of GNMI; Roman Morten Werth, Executive Vice President, Head of Strategy, M&A and M Ventures of Merck, representatives of Merck legal team and M&A team; representatives of advisers and guests attended and witnessed the signing. Zhou Fangchao, Executive Director & Senior Vice President of GNMI, and Roman Morten Werth, Executive Vice President, Head of Strategy, M&A and M Ventures of Merck signed on behalf of their respective sides.
Merck Surface Solutions is specialized in solutions used in coating, cosmetic and industrial applications. Surface Solutions holds a strong position in the high-quality markets, with remarkable influence especially in the global automotive and cosmetics markets. GNMI and Surface Solutions are highly complementary from a product portfolio, expertise and geographic footprint perspective. The proposed combination will strengthen the position of the business post-closing and enable an even more customer-centric go to market approach. The acquisition is anticipated to further broaden the global capabilities of GNMI and enhance product excellence.
Ertian Su, Chairman of the Board and CEO of Global New Material International, said: “I am excited to announce our acquisition of Merck Surface Solutions, and look forward to a seamless integration upon post-closing. The acquisition will be a landmark moment for GNMI as the newly combined team will bring the best of both worlds, with a combined set of capabilities, expertise, talent, geographic and sales network. As one team, we will jointly offer innovation and product excellence to our customers and partners, uplift the industry standards, and achieve an unwavering position in the global marketplace. I truly believe that integrating with Surface Solutions will be a key catalyst for our business and our industry, enabling GNMI to achieve new heights of success.”
“GNMI and our Surface Solutions business will join forces and combine their strengths to form an even stronger team, delivering excellence in the pigments industry,” said Belén Garijo, Chair of the Executive Board and CEO of Merck.
Kai Beckmann, Member of the Executive Board of Merck and CEO of Electronics, said: “The combination of Surface Solutions and GNMI will strengthen the competitiveness of the business, thus providing better prospects for employees and customers.”
GNMI will be fully committed to embarking on this new journey with Surface Solutions. The combination of our businesses not only unlocks an infinite number of opportunities for GNMI and our industry, but it will be full of opportunities for personal and career development for all employees as well. An integration team consisting of representatives of both GNMI and Surface Solutions will jointly develop plans for combining our expertise, resources and activities to ensure smooth integration, and maximize the growth synergies between the two companies.
Upon closing, the production facilities of Surface Solutions in Gernsheim (Germany), Onahama (Japan), and Savannah, Georgia (United States) will become regional hubs of the enlarged business with continued operations. Simultaneously, global employees of Surface Solutions will be retained. There is also a comprehensive job guarantee program for the Gernsheim and Darmstadt sites as well as a site guarantee for Gernsheim in place until at least 2032.
Merck Surface Solutions and GNMI remain separate and independent companies until the transaction closes.