Germany’s Merck has agreed to sell its Surface Solutions business unit to Global New Material International (GNMI) of China for €665m ($720m) in cash.
Surface Solutions makes pigments used in coating, industrial and cosmetic applications and generated sales of €411m last year.
Around 1,200 employees, approximately 700 of whom are based in Germany, are to be transferred to GNMI as part of the transaction.
GNMI is planning for the Surface Solutions business unit to have three regional headquarters with one each in Germany, the United States and Asia, while maintaining its existing production facilities in Gernsheim, Germany, Onahama, Japan, and Savannah, Georgia, USA.
Merck will remain the owner of the property at the Gernsheim site with a long-term lease contract with GNMI and a clear separation plan for the area used by Surface Solutions.
The GreenTech Park Fluxum in Gernsheim is not affected by the sale.
The transaction is expected to close in the course of 2025 and is subject to regulatory approvals and the satisfaction of certain other customary closing conditions
Merck intends to use the net proceeds from the divestment to strengthen its strategic core businesses.
“The divestiture of the Surface Solutions business unit will further sharpen our focus on high-tech applications in electronics, such as driving the development of next-generation chips as an integrated solutions provider for our semiconductor customers,” said Belén Garijo, Chair of the Executive Board and CEO of Merck (pictured, right).
Ertian Su, chairman and CEO of GNMI (pictured, centre), said: “We are impressed by the commitment, experience and expertise of Surface Solutions’ employees and are already looking forward to welcoming our future colleagues to the company.
“The combination will provide attractive long-term prospects for career development, including job guarantees for employees in Germany and a site guarantee for Gernsheim until 2032. This is a clear sign of how much we value the business and its employees,” he added.
