Merck has completed the sale of its Surface Solutions business unit to Global New Material International (GNMI) of China for €665m ($769m).
The transaction covers Merck’s global Surface Solutions business with sales of more than €400m in 2024, which GNMI will continue under the new Susonity brand.
Around 1,100 employees, more than 600 of whom are based in Germany, have been transferred to GNMI.
As part of the agreement with Merck, GNMI has guaranteed both the future of the Gernsheim site and the employment of its staff based in Germany until 2032.
Savannah, USA, and Onahama, Japan, will remain important production sites for Susonity alongside Gernsheim.
Moreover, Merck and GNMI have entered into a series of supply and service agreements to ensure the seamless transition of the business.
Merck will remain the owner of the property at the Gernsheim site.
The area used by Surface Solutions will be leased to GNMI on a long-term contract.
The GreenTech-Park Fluxum in Gernsheim is not affected by the divestment.
The German firm will use the net proceeds from the divestment to strengthen its strategic core businesses.
“With the closure of this transaction, we are further sharpening our portfolio focus on technology-driven business,” said Belén Garijo, CEO of Merck (pictured, centre).
“By divesting Surface Solutions, we are positioning our Electronics business sector even more strongly as a provider of semiconductor solutions. At the same time, GNMI offers new possibilities for the Surface Solutions business,” added Kai Beckmann, member of the Executive Board at Merck and CEO Electronics (pictured, left).
