LUDWIGSHAFEN, Germany - BASF announced an agreement to acquire resins manufacturer Johnson Polymer, a subsidiary of JohnsonDiversey Inc. of Sturtevant, Wis., a U.S. cleaning and hygiene products manufacturer. The respective agreement signed on May 1, 2006, provides for a sale price of $470 million on a cash and debt-free basis. Both companies have agreed not to disclose additional financial details of the deal. The transaction, which is still subject to approval by the relevant authorities, is expected to close by the end of June 2006. The parties are also seeking the advice of the Johnson Polymer B.V. (Netherlands) works council prior to finalizing the transaction.

Johnson Polymer is one of the world's leading producers and suppliers of water-based resins. Johnson Polymer's water-based product range complements BASF's existing portfolio, which concentrates mainly on high-solids and UV resins.

"This transaction is a further important step in strengthening BASF's technology- and innovation-driven specialty business with performance products. The deal will further improve BASF's position in a profitable, fast-growing business and open up new areas for innovation," said BASF Board Member Dr. Andreas Kreimeyer.

"The acquisition of Johnson Polymer expands our high-growth coating resins business. We are supplementing our expertise in this area with water-based technologies from a customer-focused company with a highly qualified team," added Patrick Prévost, president of BASF's Performance Chemicals division.

Johnson Polymer's operations will be integrated into BASF's Performance Chemicals division. This division produces and markets a broad range of specialty chemicals worldwide.