Global New Material International (GNMI) Signs Agreement to Acquire Merck's Surface Solutions Business
Unleashing Growth Synergy and Expanding Global Footprint
HONG KONG/FRANKFURT, July 25, 2024 - (ACN Newswire) – Global New Material International Holdings Limited (“GNMI”, 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, subject to regulatory approvals and satisfaction of certain customary closing conditions.
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 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.”
Mr. Su added, “I am 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 to maximize the growth synergies between the two companies.”
“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 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, spearheaded by its brand Chesir and CQV, has deep expertise in research and development, production, and sales of synthetic mica, pearlescent materials, and new energy materials. With main production capacities in China and Korea, GNMI holds a leading position in the mid-to-high market, supplying highly-functional cutting-edge materials to multinational customers worldwide in various sectors such as automobiles, cosmetics, electronic goods, personal cares, plastics, printings, foods, and pharmaceuticals. In particular, CQV is a pioneer in effect pigments in Korea and beyond, and will continue to play a critical role in expanding GNMI's global footprint along with the addition of Surface Solutions.
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, especially in the global automotive and cosmetics markets.
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, 1,200 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.
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.
About Global New Material International
Global New Material International Holdings Limited (GNMI, Hong Kong stock code: 06616) is one of the largest pearlescent pigment producers. Spearheaded by its brand Chesir and CQV, it has deep expertise in research and development, production, and sales of pearlescent materials, synthetic mica, and new energy materials. With approximately 800 employees and main production capacities in China and Korea, GNMI holds a leading position in the mid-to-high market, supplying highly-functional cutting-edge materials to multinational customers worldwide in various sectors such as automobiles, cosmetics, electronic goods, personal cares, plastics, printings, foods, and pharmaceuticals.
About Merck
Merck, a leading science and technology company, operates across life science, healthcare and electronics. Around 63,000 employees work to make a positive difference to millions of people’s lives every day by creating more joyful and sustainable ways to live. From providing products and services that accelerate drug development and manufacturing as well as discovering unique ways to treat the most challenging diseases to enabling the intelligence of devices – the company is everywhere. In 2023, Merck generated sales of € 21 billion in 65 countries.
Scientific exploration and responsible entrepreneurship have been key to Merck’s technological and scientific advances. This is how Merck has thrived since its founding in 1668. The founding family remains the majority owner of the publicly listed company. Merck holds the global rights to the Merck name and brand. The only exceptions are the United States and Canada, where the business sectors of Merck operate as MilliporeSigma in life science, EMD Serono in healthcare, and EMD Electronics in electronics.
