Bangkok: An affiliate of billionaire John Grayken’s Lone Star Funds agreed to buy BASF SE’s construction chemicals business for 3.17 billion euros ($3.5 billion).

The deal, priced on a cash and debt-free basis, is expected to close in the third quarter of next year, subject to competition authority approval, Lone Star said in a joint statement with BASF. The business complements Lone Star’s portfolio of investments in construction materials, the private equity firm said.

The unit has more than 7,000 employees, operates in over 60 countries and generated sales of about 2.5 billion euros in 2018, according to the statement. The BASF group will reflect the removal of the construction chemicals operations in its earnings statements, retroactive to the start of 2019.

BASF announced a strategic review of the division last year. Lone Star entered exclusive talks with BASF after beating out a rival consortium that included Cinven and Bain Capital, people familiar with the matter said last month.