Merck Completes €665 Million Divestment of Surface Solutions Business to GNMI, Marking Strategic Realignment Toward Innovation-Focused Growth
In a decisive move underscoring its strategic emphasis on core technological and scientific capabilities, Merck, the global science and technology powerhouse headquartered in Darmstadt, Germany, announced the successful closing of its divestment of the Surface Solutions business to Global New Material International Holdings Ltd. (GNMI). The transaction, officially finalized on July 31, 2025, comes after clearance from all required regulatory bodies and the fulfillment of customary closing conditions. The total transaction value stands at €665 million.
This strategic divestiture marks another critical step in Merck’s ongoing portfolio optimization strategy. The company is reallocating capital and management focus toward high-growth, innovation-driven areas such as healthcare, life sciences, and electronics—sectors where Merck aims to solidify its leadership over the long term.
Strategic Focus: Realigning Toward Technological Leadership
“With the closure of this transaction, we are further sharpening our portfolio focus on technology-driven business,” stated Belén Garijo, Chair of the Executive Board and CEO of Merck. “Alongside our recent acquisitions of SpringWorks Therapeutics, HUB Organoids, Unity-SC, and Mirus Bio, the divestiture of non-strategic businesses remains a key component of our M&A strategy. Our goal is to ensure sustainable, long-term growth through targeted innovation and disciplined capital deployment.”
Merck’s strategic recalibration is not a sudden pivot but part of a broader transformation underway for several years. The company has aggressively expanded its capabilities in precision oncology, organoid technology, gene therapy tools, and semiconductor manufacturing solutions—all of which align with macro trends in personalized medicine, digital biology, and global tech infrastructure.
The divestment of Surface Solutions, a business primarily focused on effect pigments and cosmetic applications, frees up Merck to concentrate on markets where it sees not just growth, but the opportunity to shape the future through innovation and technology leadership.
A New Chapter for Surface Solutions Under GNMI
The Surface Solutions division has now been integrated into Global New Material International Holdings Ltd. (HKSE: 6616), a Chinese multinational and one of the world’s largest manufacturers of pearlescent pigments. Going forward, GNMI will operate the acquired business under the new Susonity brand.
The Surface Solutions unit, which reported annual sales of over €400 million in 2024, has long been recognized for its high-quality effect pigments used across automotive coatings, cosmetics, plastics, and other specialty applications. The business includes a global workforce of approximately 1,100 employees, with more than 600 based in Germany. All employees have been successfully transferred to GNMI as part of the transaction.
GNMI has publicly committed to maintaining the operational and employment integrity of the Surface Solutions business for the foreseeable future. Under the terms of the agreement, GNMI has guaranteed the continuation of the Gernsheim site and the preservation of all jobs located there until at least 2032.
“We are delighted to welcome the new employees to our company,” said Ertian Su, Chairman and Chief Executive Officer of GNMI. “Our activities complement one another in product portfolios, technical expertise, and geographic reach. Together, we are on an excellent footing to accelerate innovation and drive growth in what continues to be a highly dynamic market segment.”
Safeguarding Operational Continuity: Global Sites and Long-Term Agreements
In addition to Gernsheim, Germany, which remains the centerpiece of the Surface Solutions infrastructure, the division includes significant manufacturing operations in Savannah, Georgia (USA) and Onahama, Japan. These sites will continue to play a vital role in supporting Susonity’s global production footprint under GNMI’s stewardship.
Merck will retain ownership of the Gernsheim property, with the facilities previously used by Surface Solutions now being leased to GNMI under a long-term agreement. Importantly, the GreenTech-Park Fluxum, a key component of Merck’s future-focused sustainability initiatives in Gernsheim, remains wholly unaffected by the transaction.
To facilitate a smooth transition and ensure that existing customers and partners experience no disruption, Merck and GNMI have also established a number of long-term supply and service agreements. These arrangements are designed to ensure continuity across technical services, supply chain management, and regulatory compliance during the post-divestiture phase.
Electronics Sector to Gain Sharper Focus on Semiconductors
From Merck’s perspective, the sale of Surface Solutions is also strategically important for the future of its Electronics business sector, which includes a wide range of advanced materials and equipment serving the global semiconductor industry. As Merck pivots more strongly toward enabling next-generation computing and connectivity technologies, the Surface Solutions divestment is being viewed as a catalyst for deeper concentration in semiconductor solutions and related markets.
“By divesting Surface Solutions, we are positioning our Electronics business sector even more strongly as a provider of semiconductor solutions,” noted Kai Beckmann, Member of the Executive Board at Merck and CEO Electronics. “At the same time, GNMI brings new opportunities for the Surface Solutions business, allowing it to grow under a company that is deeply committed to the pigment and materials segment. This means that employees gain long-term future prospects, while customers benefit from an expanded product offering and deeper specialization.”
Beckmann also expressed gratitude to the departing employees for their contributions to Merck’s legacy in materials science. “We thank our colleagues for their dedicated work and valuable contributions. They have helped make Surface Solutions a global leader in its category, and we wish them every success in the future as they continue this journey under GNMI.”
Financial Flexibility and Strategic Deployment of Capital
The €665 million in gross proceeds from the sale will provide Merck with enhanced financial flexibility to further invest in its strategic priorities. While Merck has not disclosed specific plans for the proceeds, the company has historically used similar cash inflows to fund pipeline expansion, accelerate innovation platforms, and support bolt-on acquisitions in high-growth sectors.
This divestiture follows a string of targeted M&A and investment initiatives by Merck in 2024 and 2025, including the high-profile acquisitions of SpringWorks Therapeutics—focused on precision oncology therapies—and HUB Organoids, a pioneer in patient-derived organoid models that simulate human diseases for drug discovery. Additional bolt-ons like Unity-SC, a semiconductor metrology firm, and Mirus Bio, a gene delivery technology innovator, have bolstered Merck’s leadership across diverse innovation ecosystems.
Together, these moves form part of Merck’s broader Value Creation Plan—an ambitious roadmap to maximize shareholder value through disciplined capital deployment, sustainable growth, and science-driven innovation.
The successful divestment of the Surface Solutions business to GNMI is more than a routine portfolio adjustment for Merck—it is a tangible milestone in the company’s transformation into a next-generation science and technology leader. With sharpened focus, strategic capital reinvestment, and a bold vision for innovation, Merck continues to reshape its future in ways that align with global megatrends and societal needs.
At the same time, the transaction ensures that Surface Solutions and its global workforce enter a new chapter of opportunity under GNMI, a company whose commitment to materials science and pigments ensures strong strategic fit and continuity.
As both companies look to the future, the deal represents a win-win outcome—one that strengthens Merck’s future-facing growth trajectory while offering long-term value creation and stability for GNMI, its newly expanded business unit, and its global customer base.
