Merck to Sell Surface Solutions Business Unit for 665 Million Euros

Business Strategy Merck to Sell Surface Solutions Business Unit for 665 Million Euros

2024-07-30 Source: Press release Merck KGaA 3 min Reading Time

Related Vendors

Merck KGaA

Angst+Pfister AG

Glatt Ingenieurtechnik GmbH

Maag Pump Systems AG

Merck has plans to sell its surface solutions business unit to Global New Material International Holdings for 665 million euros. With this move, Merck will use the net proceeds from the divestment to further strengthen its strategic core businesses.

Merck has signed an agreement to sell its global Surface Solutions business unit to Global New Material International Holdings for 665 million euros in cash. (Source: Merck KGaA) — Merck has signed an agreement to sell its global Surface Solutions business unit to Global New Material International Holdings for 665 million euros in cash.
(Source: Merck KGaA)

Darmstadt/Germany – Merck has signed an agreement to sell its global Surface Solutions business unit to Global New Material International Holdings for 665 million euros in cash. Merck intends to use the net proceeds from the divestment to further strengthen its strategic core businesses.

“The divestiture of the Surface Solutions business unit will further sharpen our focus on high-tech applications in Electronics, such as driving the development of next-generation chips as an integrated solutions provider for our semiconductor customers,” said Belén Garijo, Chair of the Executive Board and CEO of Merck. “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.”

“The combination of Surface Solutions and GNMI will strengthen the competitiveness of the business, thus providing better prospects for employees and customers. At the same time, this transaction gives us the opportunity to focus even more intensively on the semiconductor and display industries within Electronics,” added Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics.

“Merck’s Surface Solutions unit and GNMI share the philosophy of growing a customer-centric business. Our activities are highly complementary in terms of products, expertise and regional footprint. By joining forces, we will be excellently positioned to jointly drive growth in a very dynamic market segment. The combined businesses will provide even more customer proximity with a presence in every region along with an even broader product portfolio that stands for quality and reliability,” said Ertian Su, Chairman & Chief Executive Officer of GNMI. “We are impressed by the commitment, experience and expertise of Surface Solutions’ employees and are already looking forward to welcoming our future colleagues to the company. The combination will provide attractive long-term prospects for career development, including job guarantees for employees in Germany and a site guarantee for Gernsheim until 2032. This is a clear sign of how much we value the business and its employees.”

Surface Solutions offers pigment solutions used in coating, industrial and cosmetic applications. The business unit generated sales of 411 million euros in 2023. Roughly 1,200 employees, approximately 700 of whom are based in Germany, are to be transferred to GNMI as part of the transaction.

Stay up to Date

Do you want the latest news, specialist articles and information on new products? Then you can register for our free newsletter:

Choose your Newsletter

GNMI, also known under the brand name Chesir, is one of the largest pearlescent pigment producers. Founded in 2011, the company has sites in China and Korea with approximately 800 employees and is listed on the Hong Kong stock exchange. GNMI has profound expertise in effect pigments and the rapidly growing and competitive field of mica-based products. The company is characterized by a deep understanding of the Asian and, in particular, the Chinese market, especially in the area of pearlescent pigments, industrial coatings and plastics. It also specializes in rapid commercialization and optimized profitability through economies of scale.

To prepare for the completion of the sale, an integration team comprising representatives of both companies will be set up to define how the strengths of both businesses can best be combined. In addition, GNMI is planning for the Surface Solutions business unit to have three regional headquarters with one each in Germany, the United States and Asia, while maintaining its existing production facilities in Gernsheim, Germany, Onahama, Japan, and Savannah, Georgia, USA. Merck will remain the owner of the property at the Gernsheim site with a long-term lease contract with GNMI and a clear separation plan for the area used by Surface Solutions. The Greentech Park Fluxum in Gernsheim is not affected by the sale.

Subscribe to the newsletter now

Don't Miss out on Our Best Content

Business E-mail

Please enter a valid mailadress.

By clicking on „Subscribe to Newsletter“ I agree to the processing and use of my data according to the consent form (please expand for details) and accept the Terms of Use. For more information, please see our Privacy Policy. The consent declaration relates, among other things, to the sending of editorial newsletters by email and to data matching for marketing purposes with selected advertising partners (e.g., LinkedIn, Google, Meta)

Date: 08.12.2025

Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.

Consent to the use of data for promotional purposes

I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planck-Str. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here

Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.

Additionally, my consent also includes the processing of my email address and telephone number for data matching for marketing purposes with select advertising partners such as LinkedIn, Google, and Meta. For this, Vogel Communications Group may transmit said data in hashed form to the advertising partners who then use said data to determine whether I am also a member of the mentioned advertising partner portals. Vogel Communications Group uses this feature for the purposes of re-targeting (up-selling, cross-selling, and customer loyalty), generating so-called look-alike audiences for acquisition of new customers, and as basis for exclusion for on-going advertising campaigns. Further information can be found in section “data matching for marketing purposes”.

In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here. This does not apply to data matching for marketing purposes.

Right of revocation

I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://contact.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.

The transaction is expected to close in the course of 2025 and is subject to regulatory approvals and the satisfaction of certain other customary closing conditions. The sale of Surface Solutions does not yet comprise the French Surface Solutions business, where GNMI has made a binding offer to acquire the relevant shares and assets once Merck has informed and consulted with the relevant works council representatives.

(ID:50114902)