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A perfect match in the global pigments industry -  GNMI to acquire Surface Solutions business of Merck KGaA, DARMSTADT, GERMANY

Today, on July 25th, Merck KGaA, Darmstadt, Germany signed an agreement to enter into a transaction with GNMI, one of largest pearlescent pigment producers globally, listed at the Hong Kong stock exchange. Subject to relevant approvals and the fulfilment of customary closing conditions, GNMI will acquire and continue to operate the Surface Solutions business as the new owner. For the time being, and until closing expected in H2 2025, this agreement does not change anything for you or the work we do – all existing contracts will remain unchanged, and I remain your contact point.

Why GNMI?

We are convinced that GNMI's business and the Surface Solutions business of Merck KGaA, Darmstadt, Germany are a perfect match. They will both benefit from each other and will create a strong value proposition for customers and employees. GNMI has a deep expertise in commodity products – both in natural and synthetic mica – and a strong position in Asia and the Chinese market in particular.

With the new owner, the Surface Solutions business will be moving into the center of strategic focus of a key player with a proven track record of industry-leading growth rates and profitability.

Post-closing, joint customers will be able to access a full range of products – from high-end premium products to high-volume offerings manufactured with state-of-the-art equipment. We will be able to provide you with an enhanced product portfolio of synthetic mica, natural mica, glass flake, and silica & alumina, while improving our position as a high-quality supplier in coatings, cosmetics, and industrials.

What does this mean for you?

For now, nothing changes for you. At Surface Solutions, our relationship with our customers has been fundamental to our success and this is not going to change. Rest assured that we have been extremely diligent in our assessment of potential buyers. We are convinced that this move is exactly the right step. The acquisition of Surface Solutions by GNMI is a commitment to future innovation and investments. For GNMI, our global sales and distribution network as well as our employees and their capabilities are a key asset to be invested in and maintained. We are convinced that this will create new opportunities for you as a customer as well. Please rest assured that we remain focused on creating value for customers, employees, owners, and investors – being the best business to buy from, to work for and to further invest in.

For additional information please visit our website http://www.global-surface-partner.com

Outlook and next steps

As mentioned, this transaction  is subject to regulatory approvals and satisfaction of certain other customary closing conditions. The Surface Solutions business of Merck KGaA, Darmstadt, Germany and GNMI remain separate and independent businesses until the transaction closes. We know this process will take some time. As this transaction is procompetitive and we are two companies that are highly complementary in terms of product portfolio and regional setup, we are confident of receiving all necessary approvals.  

Regardless  of this ongoing process, please be aware that our team will continue to strive to deliver excellent solutions for you and serve your needs with the highest-quality standards. Our partnership is of utmost importance to us, and we will continue to do everything we can to further strengthen our collaboration. We will keep you informed throughout this process whenever there is relevant information to share. If you have questions, please do not hesitate to reach out to us!