Merck, a leading science and technology company, has finalized an agreement to sell its global Surface Solutions business unit to Global New Material International Holdings Ltd. (GNMI) for €665 million in cash. Merck plans to use the proceeds from this sale to further bolster its core strategic businesses.
“The sale of the Surface Solutions business unit will allow us to sharpen our focus on high-tech applications within Electronics, particularly in advancing next-generation chips as an integrated solutions provider for our semiconductor customers,” said Belén Garijo, Chair of the Executive Board and CEO of Merck. “This partnership with GNMI will enhance the strengths of both companies, creating a more formidable team in the pigments industry.”
Kai Beckmann, Member of the Executive Board of Merck and CEO of Electronics, added, “The integration of Surface Solutions with GNMI will enhance the competitiveness of the business, offering better opportunities for employees and customers. This transaction enables us to concentrate even more on the semiconductor and display sectors within Electronics.”
Ertian Su, Chairman & CEO of GNMI, commented, “Both Merck’s Surface Solutions unit and GNMI are committed to a customer-centric approach. Our complementary products, expertise, and regional presence will position us strongly in a dynamic market. We are excited to welcome Surface Solutions’ employees and look forward to combining our strengths. This integration includes job guarantees for employees in Germany and a commitment to maintaining the Gernsheim site until 2032, demonstrating our dedication to the business and its workforce.”
Surface Solutions provides pigment solutions for coatings, industrial, and cosmetic applications, generating €411 million in sales in 2023. Approximately 1,200 employees, including about 700 based in Germany, will transition to GNMI as part of the deal.
GNMI, also known as Chesir, is a major producer of pearlescent pigments. Founded in 2011, the company operates in China and Korea with around 800 employees and is listed on the Hong Kong stock exchange. GNMI is renowned for its expertise in effect pigments and mica-based products, with strong market knowledge, especially in Asia.
To ensure a smooth transition, an integration team from both companies will be established to optimize the merger. GNMI plans to establish three regional headquarters in Germany, the United States, and Asia, while retaining existing production facilities in Gernsheim, Germany; Onahama, Japan; and Savannah, Georgia, USA. Merck will retain ownership of the Gernsheim property under a long-term lease to GNMI, with a clear separation plan in place. The GreenTech Park Fluxum in Gernsheim will not be affected by the sale.
The transaction is expected to be completed by 2025, pending regulatory approvals and satisfaction of customary closing conditions. The sale does not yet include the French Surface Solutions business, for which GNMI has made a binding offer to acquire pending Merck’s consultation with relevant works council representatives.
