Merck Finalizes Sale of Surface Solutions Business to GNMI for €665 Million
Merck, a global leader in science and technology, has officially concluded the sale of its Surface Solutions business to Global New Material International Holdings Ltd, a leading Chinese manufacturer of pearlescent pigments listed on the Hong Kong Stock Exchange . The divestment, announced earlier in the year, closed on July 31, 2025, after receiving all necessary regulatory approvals and fulfilling standard closing conditions. The total transaction value amounts to €665 million.
This strategic move marks another important step in Merck’s long-term vision to sharpen its portfolio by focusing on high-growth, innovation-driven core businesses. The proceeds from the sale will be reinvested to further bolster Merck’s strategic business sectors, particularly in areas such as healthcare, life science, and semiconductor solutions.
Sharpening Strategic Focus
Commenting on the completion of the transaction, Belén Garijo, Chair of the Executive Board and CEO of Merck, emphasized the importance of aligning the company’s portfolio with its strategic objectives:
With the closure of this transaction, we are further sharpening our portfolio focus on technology-driven business,” Garijo stated. “Alongside the recent acquisitions of SpringWorks Therapeutics, HUB Organoids, Unity-SC, and Mirus Bio, the divestiture of non-strategic business remains a key component of our M&A strategy, geared toward ensuring long-term growth through innovation.”
The Surface Solutions business, while successful and globally recognized for its high-quality pigments used in coatings, plastics, cosmetics, and printing applications, no longer aligns with Merck’s evolving strategic direction. Its sale underscores Merck’s continued shift toward sectors with higher innovation intensity and market potential, especially in electronics and biopharma.
Strengthening Merck’s Semiconductor Focus
Kai Beckmann, Member of the Executive Board at Merck and CEO of the Electronics business sector, highlighted the rationale behind the divestment from an operational and strategic perspective.
By divesting Surface Solutions, we are positioning our Electronics business sector even more strongly as a provider of semiconductor solutions,” Beckmann said. “At the same time, GNMI offers new possibilities for the Surface Solutions business. This means that employees will gain long-term future prospects while customers will benefit from a broader product portfolio.”
He also expressed appreciation for the workforce that has contributed to the business over the years, noting:
We thank our colleagues for their dedicated work and valuable contributions they have made for Merck in the past and wish them all the best for the future.”
GNMI’s Strategic Expansion with Susonity
For GNMI, the acquisition of Surface Solutions represents a significant milestone in its strategy to expand its global footprint and product offering. The business will now operate under the new Susonity brand. With more than €400 million in annual sales (based on 2024 figures), Surface Solutions provides GNMI with a robust platform for growth in high-performance functional and decorative pigments.
GNMI CEO and Chairman Ertian Su expressed optimism about the acquisition:
We are delighted to welcome the new employees to our company. Our activities complement one another to a large extent in terms of products, expertise and regional presence. Together, we are on an excellent footing to drive growth in a highly dynamic market segment.”
GNMI is one of the world’s largest producers of pearlescent pigments, and this acquisition significantly strengthens its position in key markets, particularly Europe and the Americas. The combined capabilities of GNMI and Susonity will offer customers a broader and more diversified portfolio across industries including automotive coatings, plastics, and cosmetics.
Safeguarding Employee and Site Futures
Approximately 1,100 employees are transferring to GNMI as part of the deal, more than half of whom—over 600—are based in Germany. The transition has been structured to ensure stability for both staff and operational sites.
One of the most important aspects of the transaction is the long-term commitment made by GNMI regarding employment and site continuity. As part of the agreement, GNMI has guaranteed continued employment for staff based in Germany and committed to maintaining the Gernsheim production site through at least 2032. This provides security to employees and ensures that customers will experience no disruption in product availability or service levels.
In addition to Gernsheim, which remains a central hub for the business, production operations in Savannah, USA, and Onahama, Japan, will also be retained as key facilities for the Susonity brand. This global manufacturing footprint provides GNMI with strategic coverage and operational resilience.
Seamless Transition with Continued Collaboration
To facilitate a smooth transfer of operations, Merck and GNMI have established a range of supply and service agreements. These arrangements are designed to support operational continuity and ensure uninterrupted service to customers and partners during the transition period.
Notably, while the Surface Solutions business has changed ownership, Merck will retain the property at the Gernsheim site. The area used by the Surface Solutions business will be leased to GNMI on a long-term basis, ensuring business continuity at the site. Importantly, Merck’s development plans for the GreenTech-Park Fluxum in Gernsheim will remain unaffected by this divestment.
This collaborative approach underlines Merck’s commitment to responsible portfolio management, ensuring that any divestiture not only aligns with corporate goals but also safeguards the interests of employees, partners, and local communities.
A Milestone for Both Companies
This transaction serves as a clear demonstration of Merck’s strategic intent to focus on innovation-led growth areas, while also providing GNMI with a well-established business that enhances its global capabilities and market position.
For Merck, the divestiture is part of a broader transformation strategy, which in recent years has included selective acquisitions to strengthen its Life Science and Healthcare sectors. The reallocation of capital toward high-potential areas such as oncology, advanced semiconductors, and biotechnology reflects Merck’s long-term vision to be a global innovation leader in science and technology.
For GNMI, the acquisition of Surface Solutions and the launch of the Susonity brand signify the next phase of its international expansion. The integration of experienced talent, established customer relationships, and strong production capabilities will enable GNMI to build a more diversified and resilient business in the pigments and specialty materials industry.
