The deal follows conversations that began when German chemical giant BASF declared its intent to sell BASF Colors & Effects (BCE) and has now been officially agreed with the Japanese conglomerate. It is expected to be completed in Q4.

In taking on BCE, DIC will grow its portfolio of pigments, which at the moment are largely produced by Sun Chemical, with a range of products for electronic displays, cosmetics, coatings, plastics, inks and speciality applications. The deal will put DIC in charge of more than 30 pigment production facilities around the world.

A spokesperson for Sun Chemical told PrintWeek: “The acquisition of BCE brings together the complementary resources and expertise of two recognised leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing.

“The move improves DIC’s pigment footprint in Europe and underscores our commitment to delivering solutions tailored to meet the needs of our customers. It also allows us to compete in the global marketplace more effectively going forward.

“Sun Chemical is committed to ensuring a smooth transition, with limited to no impact on customers. In the immediate future, business for customers will remain the same as usual. A transition team will be put in place to ensure a smooth transition for customers and employees by the expected closing date.”

Acquiring BCE is part of an ongoing drive at DIC to increase its sales to the €8bn (£7.25bn) mark by 2025. With its Sun Chemical business, based out of New Jersey, US, the group currently turns over around $7.5bn (£6.16bn) and employs more than 20,000 people worldwide.

The acquisition remains subject to regulatory approval, with White & Case serving as legal counsel and Morgan Stanley as financial advisor to DIC.