Archroma announced that it has closed the acquisition of BASF's global textile chemicals business.

The company said that the acquisition further solidifies Archroma's position as an industry leader in supplying chemicals and dyes to the global textile industry. Archroma is a portfolio company of US-based private investment firm SK Capital Partners.

This is the second strategic transaction by Archroma following its corporate carve-out from Clariant in 2013, after previously acquiring a stake in the textile dyes and chemicals manufacturer M. Dohmen in 2014.

Archroma said that the BASF business delivers products and technologies across the entire textile chemicals spectrum, with particular strengths in printing, finishing and coating chemicals. The company added that the acquisition strategically complements Archroma's product portfolio and geographical presence that will now include BASF's strong market positions in Asia and several other high-growth markets. The combined textile chemicals businesses will continue their history of maintaining a strong commitment to innovation and sustainability.

"The textile industry is undergoing transformational change resulting from macro supply and demand shifts as well as a growing customer demand for sustainably-oriented solutions" said Alexander Wessels, CEO of Archroma. He added: "The operational and intellectual synergies between BASF and Archroma will allow us to offer our customers the full breadth and depth of innovation, quality, reliability, expertise and market coverage they need to prosper in these market conditions."

About 225 employees globally are in the scope of the transaction, of which approximately 175 are located in Asia. The combined textiles businesses will remain headquartered in Singapore, close to customers in Asia's fast-growing textile markets.