Global New Material International (GNMI) to acquire Merck’s Surface Solutions business

The acquisition of Merck’s Surface Solutions business is expected to close in 2025 and will be for €665,000,000, subject to regulatory approvals and satisfaction of certain customary closing conditions.

GNMI and Surface Solutions are complementary from a product portfolio, expertise and geographic footprint perspective. The acquisition is anticipated to further broaden the global capabilities of GNMI.

Ertian Su, Chairman of Global New Material International, said: “I am excited to announce our acquisition of  Merck Surface Solutions and look forward to a seamless integration upon post-closing. The acquisition will be a landmark moment for GNMI as the newly combined team will bring the best of both worlds, with a combined set of capabilities, expertise, talent, geographic and sales network… I truly believe that integrating with Surface Solutions will be a key catalyst for our business and our industry, enabling GNMI to achieve new heights of success.”

Mr. Su added, “I am fully committed to embarking on this new journey with Surface Solutions. The combination of our businesses not only unlocks an infinite number of opportunities for GNMI and our industry, but it will be full of opportunities for personal and career development for all employees as well. An integration team consisting of representatives of both GNMI and Surface Solutions will jointly develop plans for combining our expertise, resources and activities to ensure smooth integration, and to maximise the growth synergies between the two companies.”

“GNMI and our Surface Solutions business will join forces and combine their strengths to form an even stronger team, delivering excellence in the pigments industry,” said Belén Garijo, Chair of the Executive Board and CEO of Merck.

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Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics, said: “The combination of Surface Solutions and GNMI will strengthen the competitiveness of the business, thus providing better prospects for employees and customers.”

GNMI, spearheaded by its brand Chesir and CQV, has deep expertise in research and development, production, and sales of synthetic mica, pearlescent materials, and new energy materials. With 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. In particular, CQV is a pioneer in effect pigments in Korea and beyond, and will continue to play a critical role in expanding GNMI’s global footprint along with the addition of Surface Solutions.

Merck Surface Solutions is specialized in solutions used in coating, cosmetic and industrial applications. Surface Solutions holds a strong position in the high-quality markets, especially in the global automotive and cosmetics markets.

Upon closing, the production facilities of Surface Solutions in Gernsheim (Germany), Onahama (Japan), and Savannah, Georgia (United States) will become regional hubs of the enlarged business with continued operations. Simultaneously, 1,200 global employees of Surface Solutions will be retained. There is also a comprehensive job guarantee program for the Gernsheim and Darmstadt sites, as well as a site guarantee for Gernsheim in place until at least 2032.

Merck Surface Solutions  and GNMI remain separate and independent companies until the transaction closes.

For further information please also visit www.global-surface-partner.com