BASF Report 2021 Consoli dated Financial Statements – Notes 209 Divestitures Calculation of disposal loss on the global pigments business – On November 30, 2021, BASF completed the sale of the pr ecision Million € microchemicals business to Entegris, Billerica, Massachusetts. In 2021, BASF sold the following activities: June 30, 2021 The transaction included fixed assets and inventories; the – On May 31, 2021, BASF completed the sale of its production site Purchase price on a cash and debt-free basis 1,150 purchase price was €78 million. The precision microchemicals a in Kankakee, Illinois, to a subsidiary of One Rock Capital Purchase price adjustments –140 business was part of the Surface Treatment business unit of Partners, LLC. The transaction also included the vegetable- oil- Purchase price 1,010 BASF’s Coatings division, operating under the Chemetall brand. based sterols and natural vitamin E business as well as the Disposed net assets –938 anionic surfactants and esters produced at the Kankakee site. Assets of the disposal group –1,281 In 2020, BASF sold the following activity: The purchase price was €177 million. The transaction affected the – On September 30, 2020, and on November 30, 2020, BASF Nutrition & Health and Care Chemicals divisions. Reinstated receivables 30 closed the divestiture of its construction chemicals business to an – Following the fulfillment of clearance conditions, BASF closed the Liabilities of the disposal group 338 affiliate of Lone Star, Dallas, Texas, a global private equity firm. divestiture of its global pigments business to DIC, Tokyo, Japan, Reinstated liabilities –25 The purchase price on a cash and debt-free basis was €3.17 bil- on June 30, 2021. The business’ assets and liabilities have been Other –89 lion. The sale covered approximately 7,500 employees as well as reported as a disposal group since the business transfer Disposal loss before taxes –17 production sites and sales offices in more than 60 countries of the agreement was signed in August 2019. The purchase price on a Tax expense –63 former Construction Chemicals division. From the signing of the cash and debt-free basis was €1.15 billion. The transaction agreement on December 21, 2019, until the closing of the affected approximately 2,500 employees in the Dispersions & Disposal loss after taxes –80 transaction, BASF’s construction chemicals business was Pigments division. The division was renamed Dispersions & a Purchase price adjustments take into account, among other things, cash, financial indebtedness and pension reported as a discontinued operation. Purchase price adjustments Resins following the transaction closing. The disposal group of obligations. were reported in income from discontinued operations in the the pigments business was derecognized when BASF’s global amount of €36 million after taxes in 2021. pigments business was sold to DIC, Tokyo, Japan, on – On November 9, 2021, BASF and Clayton, Dubilier & Rice sold June 30, 2021. The calculation of the disposal loss on the global their shares in Solenis to Platinum Equity, Beverly Hills, California. pigments business is presented in the following table: With over 5,200 employees, Solenis serves customers in water-intensive industries by helping them solve complex water treatment and process improvement challenges. BASF held a 49% share in Solenis after having transferred its wet-end paper and water chemicals business to the company in February 2019. This was accounted for using the equity method. The remaining 51% of the shares were held by funds managed by Clayton, Dubilier & Rice, and by Solenis management. The purchase price allocated to BASF was €1.1 billion. The investment was classified as non-integral. Its earnings and the gain on the disposal in the amount of €589 million were reported under net income from shareholdings.