Merck KGaA announced today that it has acquired Suzhou Taizhu Technology Development Co. Ltd. (Taizhu), a leading supplier of effect pigments located in Taicang near Shanghai, China. With total revenues of more than €14 million in 2008 and 300 employees, Taizhu is one of the largest effect pigments companies in the Chinese market. The acquisition is of high strategic importance to the Merck pigments business.
Within the scope of this transaction, Merck has acquired the production site of Taizhu in Taicang, 40 km from Shanghai, as well as the entire sales and marketing organization in China and abroad for a total consideration of €28 million.
“The transaction is highly attractive for Merck because Taizhu’s products complement our premium product portfolio with a range that mainly serves the growing value-for-money market segment,” Klaus Bischoff, head of the Performance and Life Science Chemicals division at Merck, commented. “In addition, Taizhu’s customer base ideally complements our own. In recent years, Taizhu has built an outstanding reputation as a reliable source of high-quality effect pigments.”
China is one of the world’s fastest growing markets and is forecasted to become the second biggest effect pigment market by 2010, second only to the United States. Mercks Chemicals business subsidiary has been operating in Shanghai since 1997.