Elkem

M&A Activity • Aug 16, 2019

Elkem ASA acquires Basel Chemie

Elkem ASA acquires Basel Chemie

Oslo, 16 August, 2019: Elkem ASA acquires Basel Chemie, a Korean producer of

specialty silicone gels for cosmetics and water repellents for the construction

industry. The acquisition gives Elkem access to leading technology in attractive

end-user silicone segments and provides a solid platform for further development

and growth.

Basel Chemie was founded in 1999 and has a state-of-the-art plant near Gunsan

and a new research and development and office centre in Seoul. The company has

32 employees and had an annual turnover of USD 7.7 million in 2018 and an

average EBITDA margin of 28% over the last three years. The company is a

technology driven downstream silicones producer with a high-end speciality

portfolio for both skin care and colour cosmetic applications, and water

repellents for the construction industry. The companies have agreed an

enterprise value of USD 26.9 million for the acquisition.

"This acquisition strengthens our position in downstream specialised silicones.

Basel Chemie complements our market offering and brings additional technologies

to our specialty portfolio in Asia where we have strong positions in other

segments. This technology and offering also holds further global potential.

Acquiring Basel Chemie is in line with our strategy to take further positions in

selected, specialised silicone segments", says Helge Aasen, CEO of Elkem.

Elkem will boost Basel Chemie's specialties through Elkem's global sales and

distribution network, including access to and integration with offerings to

current customers and new markets where Elkem is present. Basel Chemie will make

Elkem a more comprehensive and attractive supplier within the cosmetics segment,

and has an attractive product offering within building protection which can be

leveraged outside Korea. The two companies will strengthen their research and

development in both Asia and Europe and integrate their value chains.

"Elkem expects to generate strong synergies from the acquisition within research

and development, value chain optimisation, complementary product offerings and

global market positions. Basel Chemie's leading position and technologies will

reinforce our silicones portfolio for the personal care industry where Elkem has

global reach and complementary products. The company has a strong specialties

position in the fast-growing innovative Korean cosmetics market, and we will get

several synergies of integrating the global marketing offerings. In the building

protection segment Elkem holds market positions outside of Korea with

significant potential for Basel Chemie's offering", says Frederic Jacquin, SVP

Elkem Silicones.

The acquisition is subject to final regulatory approvals. Closing is expected by

the end of September 2019.

For further information:

Odd-Geir Lyngstad                                                     Frederic

Jacquin

VP Finance and Investor Relations                            SVP Silicones

Tel: +47 976 72 806                                                   +33 (4) 72

13 1929

Email: odd

-geir.lyngstad@elkem.no                          frederic.jacquin@elkem.com

About Elkem ASA

Founded in 1904, Elkem is one of the world's leading suppliers of silicon-based

advanced materials with operations throughout the value chain from quartz to

specialty silicones, as well as attractive market positions in specialty

ferrosilicon alloys and carbon materials. Elkem is a publicly listed company on

the Oslo Stock Exchange, and is headquartered in Oslo. The company has 6200

employees with 27 production sites and sales offices in a total of 28 countries

worldwide. In 2018 Elkem had revenues of 25.9 billion NOK. To learn more, please

visit www.elkem.com