Please note: The Surface Solutions business of Merck KGaA, Darmstadt, Germany and GNMI remain separate and independent businesses until the transaction closes. Any statements and descriptions concerning the combined future business are made solely in anticipation of a successful closing.

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An excellent match in the global surface functional material industry

GNMI to acquire Surface Solutions business of Merck KGaA, Darmstadt, Germany

About the proposed combination

On the 25th of July 2024, Global New Material International Holdings Ltd. (GNMI), one of the largest pigment producers, signed an agreement with Merck KGaA, Darmstadt, Germany, a leading science and technology company, to acquire its Surface Solutions business unit. GNMI’s business and the Surface Solutions business of Merck KGaA, Darmstadt, Germany are an excellent match due to their highly complementary activities. Subject to customary closing conditions, the transaction will create a leading global surface functional material player with a strong value proposition for customers and employees. The combined business will strengthen its position and accelerate growth with enhanced focus, resources and commitment to future innovation and investments.

On this page you find relevant information regarding the proposed combination.

Compelling strategic rationale

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The two businesses, when combined to one, will benefit from each other and fundamentally strengthen the positioning in the market, creating a strong value proposition for customers and employees.

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GNMI has deep expertise in research and development, production, and sales of synthetic mica, pearlescent materials, and new energy materials. The company has a strong presence in Asia and the Chinese market in particular. This is highly complementary to Surface Solutions’ global market presence, especially in Europe and the Americas, as well as the company’s product portfolio.

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Joint customers will benefit from the access to a full range of products – from high-end premium products to high-volume offerings manufactured with state-of-the-art equipment.

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GNMI is a company that is determined to invest into further growth, thus strengthening the business and securing jobs, underlined by comprehensive job guarantees for Germany as well as a site guarantee for Gernsheim until at least 2032.

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The combined business will benefit from the expanding application and fast-growing demand for surface functional materials, accelerating growth through innovation and highly customer-oriented services and solutions.

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Robust growth potential will be based on leveraging each other's product portfolio in the respective markets.

Who we are

About GNMI:

Global New Material International Holdings Limited (GNMI) is one of the largest pearlescent pigment producers. Spearheaded by its brands 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.

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About Surface Solutions:

Surface Solutions is a business of the Electronics business sector of Merck KGaA, Darmstadt, Germany. It is a highly specialized business with a high-quality portfolio of effect pigments and active ingredients for automotive, cosmetic and industrial applications. Surface Solutions is globally present across major regions, has a strong international sales network and is a supplier in the high-quality segment of its markets.

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Frequently Asked Questions

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Why have you signed this agreement?

GNMI’s business and the Surface Solutions business of Merck KGaA, Darmstadt, Germany are an excellent match. They will both benefit from each other and will create a strong value proposition for customers and employees.

GNMI has deep expertise in effect pigments and synthetic mica and a detailed understanding of the Asian and Chinese market in particular. It also specializes in rapid commercialization and optimized profitability through economies of scale. This is complementary to Surface Solutions’ global market presence, especially in Europe and the Americas, as well as the company’s portfolio.

As part of GNMI, Surface Solutions will continue to compete successfully in an increasingly competitive environment – with an enhanced focus, resources and commitment to future innovation and investments.

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What opportunities do you see for the future growth of the combined businesses?

Surface Solutions is a strong and successful business which will complement GNMI with regard to its existing portfolio, expertise, and geographical footprint. Upon closing, GNMI's primary objective is to ensure a seamless transition of Surface Solutions. GNMI is committed to significant growth opportunities, leveraging the complementarity between the two companies' primary businesses in areas such as product portfolio, sales channels, supply chain, R&D, and more. By combining the strengths of GNMI and Surface Solutions, the newly formed business will aim to become a frontrunner in the global surface functional materials industry.

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Are there any overlaps between GNMI and Surface Solutions?

GNMI and Surface Solutions are an excellent match with highly complementary product portfolios and regional setup. GNMI has deep expertise in effect pigments, a broad synthetic mica range and a strong presence in Asia and the Chinese market in particular. This is highly complementary to Surface Solutions’ global market presence.

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What does this acquisition mean for Surface Solutions’ employees and sites?

GNMI plans to invest in further growth, thus strengthening the business and securing jobs. Aiming to expand their global footprint, GNMI values Surface Solutions’ sites and employees in all regions.

GNMI has committed to extensive job guarantees for employees in Germany until 2032. The management team, employee base and culture are a crucial part of the value GNMI sees in Surface Solutions.

Upon closing, GNMI plans to maintain the existing production facilities of Surface Solutions in Gernsheim (Germany), Savannah (Georgia, USA) and Onahama (Japan).

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What is the transaction scope? How many employees are affected?

The transaction scope comprises the Surface Solutions business as well as its employees, products and assets with a few exceptions. In total, around 1,200 employees worldwide, approximately 700 of which are based in Germany, will become part of GNMI.

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What are the next steps in the transaction?

The transaction is subject to regulatory approvals and satisfaction of certain other customary closing conditions. To prepare for the closing of the transaction, an integration team comprising representatives of both companies will be set up to define how the strengths of both parties can best be combined.

For the time being and until closing, this agreement does not change anything regarding the work at GNMI or Surface Solutions. The Surface Solutions business of Merck KGaA, Darmstadt, Germany as well as GNMI will remain separate and independent businesses until the transaction closes.

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When do you expect the transaction to close?

We are confident we will be able to work with the authorities to obtain clearance for the closing. We expect this to happen in the course of 2025.

Further Information

Press release


Contacts

Sales Team Surface Solutions, Merck KGaA, Darmstadt, Germany

https://surface-portal.emdgroup.com/US/en/contact-us


Media Contacts Merck KGaA, Darmstadt, Germany

Chantal Gilsdorf, chantal.gilsdorf@emdgroup.com, Phone: +49 151 1454 2860

Andreas Schwab, andreas.schwab@emdgroup.com, Phone: +49 151 1454 5573


Sales Team GNMI

http://www.chesir.com/en/contact/


Media Contact GNMI

global-surface-partner@fticonsulting.com


Imprint

CONTACT
Merck KGaA
Frankfurter Strasse 250
64293 Darmstadt
Germany

Phone: +49 6151 72-0
Telefax: +49 6151 72-2000
Email: service@emdgroup.com

DETAILS
Legal form: Corporation with general partners
Commercial Register: HRB 6164
Amtsgericht Darmstadt
Registered Office: Darmstadt
Chairman of the Supervisory Board: Michael Kleinemeier

Executive Board:
Belén Garijo, MD (Chair & CEO)
Dr. Kai Beckmann (CEO Electronics)
Peter Guenter (CEO Healthcare)
Dr. Matthias Heinzel (CEO Life Science)
Helene von Roeder (CFO)

Value Added Tax Identification Number (VAT ID): DE 811850788
Competent Governmental Authority: Regierungspräsidium Darmstadt (Germany).
Content Responsible (§ 18 para. 2 German Interstate Media Treaty [MStV]): Andreas Schwab

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