Merck sells Surface Solutions to Global New Material International for €665 million in cash

Merck has signed an agreement to sell its Surface Solutions business unit to Global New Material International for €665 million in cash. Merck intends to use the net proceeds from this divestiture to further strengthen its strategic core businesses.

“The divestment of the Surface Solutions business unit will further strengthen our focus on high-tech applications in the electronics sector, for example as an integrated solutions provider for semiconductor customers, driving the development of next-generation chips,” said Belén Garijo, Chairman of the Executive Board and CEO of Merck. “Together, Global New Material International and our Surface Solutions business will combine their strengths to form an even stronger team to deliver excellence in the pigments industry.”

“The combination of Surface Solutions and Global New Material International will enhance the competitiveness of the business and thus provide better prospects for employees and customers. At the same time, the transaction gives us the opportunity to focus even more on the semiconductor and display industries in the Electronics business,” added Kai Beckmann, Member of the Executive Board of Merck and CEO of Electronics.

“Both Merck’s Surface Solutions division and Global New Materials International Holdings have a customer-centric development philosophy. Our businesses are highly complementary in terms of products, expertise and regional coverage. By joining forces, we will be well positioned to jointly drive growth in a very dynamic market segment. The combined business will offer even closer customer service, coverage in every region and a broader product portfolio with guaranteed quality and reliability,” said Ertian Su, Chairman and CEO of Global New Materials International Holdings. “We are impressed by the dedication, experience and expertise of the Surface Solutions employees and we are already looking forward to welcoming our future colleagues to the company. The merger will offer attractive long-term prospects for career development, including job security for German employees and site security in Gernsheim. This clearly demonstrates how much we value the business and its employees.”

Surface Solutions provides pigment solutions for coatings, industrial and cosmetic applications. The business unit has sales of €411 million in 2023. As part of the transaction, approximately 1,200 employees, of which approximately 700 work in Germany, will be transferred to Global New Materials International Holdings.

Global New Materials International Holdings is one of the largest producers of pearlescent pigments.

The transaction is expected to close in 2025, subject to regulatory approvals and certain other customary closing conditions. The sale of Surface Solutions does not yet include the French Surface Solutions business, for which Global New Materials International Holdings has made a binding offer to acquire the relevant shares and assets after Merck has notified and consulted with the relevant trade union representatives.