ENGELHORN

“No Artificial Colors” is often found today on the labels of food and textile. Health and environment were not a concern in 19^th century Germany (as everywhere else). Engelhorn had a simple but revolutionary vision: factories needed coal to fuel their steam engines. The burgeoning coal industries had a lot of side-products from which Friedrich managed to create synthetic dyes: it was a ground-breaking innovation: for thousands of years, since the crimson powder used by Phoenicians, humankind used natural dyes, extracted from plants or stones, which were expensive and difficult to find. Artificial dyes offered a cheaper, large-scale and more vibrant alternative. From walls to clothing, everything could be painted: BASF, the first company ever to hire a physician inside a factory in 1865, was on the path to becoming a powerhouse. Just ten years later, Friedrich opened the first plant outside Germany: in Butirki, Russia. BASF was one of the first multinationals in Europe. Globalization seeds were sown. Under Friedrich’s leadership, BASF thrived: its coal tar dye factory used by-products from steel industry. This strategic move allowed BASF to produce synthetic dyes more efficiently and at a lower cost than its competitors, ensuring the company's rapid growth and profitability. Friedrich’s leadership style was marked by a commitment to research and development: he developed the Haber-Bosch process for synthesizing ammonia, which would later revolutionize agriculture by enabling the mass production of fertilizers.

Friedrich's son, Carl, born in 1859, continued his father's legacy. He oversaw the company's diversification into other chemical products, including pharmaceuticals and agricultural chemicals. BASF became one of the largest chemical companies in the world. The family's wealth grew exponentially, allowing them to invest in other sectors.

Carl steered BASF through turbulent times, including two world wars. He recognized the importance of adapting to changing market conditions and invested heavily in modernizing BASF’s production facilities: he also expanded BASF’s global footprint, establishing subsidiaries and partnerships in key markets around the world: all this expansion did not avoid government and politics: after 1870, following the Sedan Battle, Empire of Prussia (the predecessor of Germany) became a superpower. The ascent went hand in hand with military dominance: the generals soon discovered the potential of chemistry in making war. Carl, on the other side, was keen to support his country military stance.

On 1914, when a Serbian-Bosnian activist Gavrilo Princip killed in Sarajevo the archduke Franz Ferdinand, with a shotgun, Europe gasped. The assassination marked the start of the World War: back in Germany the Engelhorn family toasted. WWI had a significant boost to their business. During the 4 years conflict, BASF produced synthetic nitrates for explosives and other chemical warfare agents, contributing to Prussia war effort. It did not help, though: the Reich lost the war, Prussia collapsed, the Hohenzollern dynasty ended and Germany was born. The country was impoverished except for the Engelhorn family which made millions from selling weapons to the government. It did not seem to care much about moral dilemmas or ethics. While the Weimar Republic led the country into discontent and economic crisis, political leader Adolf Hitler gained popular consent. The ascent of Nazism led to a second-wave of weaponization of the country, which meant more money for BASF. The company was then part of IG Farben, a conglomerate that was created in 1925 at the peak of the crisis to save the german chemical industries. The company was responsible of the jews genocide as it produced the infamous Zyklon B, officially a pest-control gas but then used in concentration camps to kill the prisoners.

As Anglo-Americans and Russians gained control of Nazi Europe, BASF's facilities were heavily damaged by bombings, and the company's involvement in the holocaust put the Engelhorns under attack. Despite heavy accusations, the family showed resilience. After World War II, BASF was rebuilt and modernized. The company's recovery was swift, thanks also to an unspoken amnesty which saved german industries: the IG Farben has been closed down only in 2012, some 80 years later the genocide. By the mid-20th century, BASF had reestablished itself as a global leader in the chemical industry. The post-war era required a complete restructuring of the company, both in terms of its physical assets and its corporate governance.

The post-war economic boom augmented the Engelhorn’s wealth: despite being involved in the killing of millions jews, they never paid a single DeutscheMark as a repayment for the holocaust. The family, instead, diversified its portfolio in finance, real estate, and biotechnology. Their fortune allowed them to lead luxurious lifestyles and also contribute to charitable donations, particularly in the fields of education, healthcare, and the arts. Curt Engelhorn, the great-grandson of Friedrich, was born in 1926: he was not there in the WWI and was only a teenager when the Nazis were killing jews using his family’s chemical products. He became to be a notable member of the family: after graduating in chemistry at the University of  Texas, in Austin, he was for three decades the ceo of Boehringer Mannheim, a pharmaceutical company in which he owned 40% of shares. He transformed it into a Big Pharma. In 1997, he sold the company to the swiss giant Roche for 10 billion Dollars, significantly boosting the family's fortune. At the same time, he invested a lot philanthropic efforts in order to erase holocaust responsibilities and rebuild reputation. He established the Curt Engelhorn Foundation, which supported numerous research projects and institutions. Some habits die hard, though.

Despite their effort to clean their horrible past and rebuild their reputation, the Engelhorn family, which is today worth over 6 billion Dollars, fell again into controversies and scandals. In the 1990s, members of the family were implicated in tax evasion schemes, leading to legal battles and financial penalties. Curt himself was embroiled in legal issues regarding missed taxes for 440 million Euros. He settled the accusations with the German authorities for a substantial sum, but the episode served as a reminder of the scrutiny that comes with great wealth. The Engelhorn family has always been keen on preserving their legacy and values. Already before his death in 2016, the 90 years-old Curt ensured that his descendants were well-prepared to handle the family business. His daughters, Caroline and Veronica, have been actively involved in family’s tradition in philantropy. Both sisters have maintained a low public profile, preferring to let their work speak for itself. Peter, Curt’s brother, and Stefan, other prominent members of the current generation, have also been involved in managing the family's investments and philanthropic activities. They have managed to keep the family business within the family, passing down leadership roles from one generation to the next. This continuity has been a key factor in their sustained success, at least up to Marlene which loves to disperse her wealth.