DSM to complete divestment program through sale of DSM Elastomers
(Thomson Reuters ONE) -
Royal DSM N.V., the global Life Sciences and Materials Sciences company
headquartered in the Netherlands, today announces that it has reached an
agreement regarding the sale of the remaining part of DSM Elastomers (DSM
Elastomers) to LANXESS for ? 310 million on a cash and debt-free basis. The
intended sale is expected to close in the first months of 2011, subject to
regulatory and other customary approvals and notifications.
The intended sale of DSM Elastomers, producer of EP(D)M rubber under the brand
name Keltan(®), is a result of DSM's ambition to focus on Life Sciences and
Materials Sciences. DSM Elastomers no longer fits with this focus. Earlier this
year, DSM sold the business unit Thermoplastic Elastomers (Sarlink(®)), formerly
part of this business group, to Teknor Apex Company.
The price for the DSM Elastomers business represents an EBITDA multiple of
roughly 6 based on the expected EBITDA of 2010. DSM expects to report a book
profit of more than ? 100 million as a result of the transaction upon closing.
Approximately 420 employees will transfer to the new owner upon closing.
This announcement represents the final stage of the transformation of DSM that
began with the divestment program DSM announced in September 2007 as part of its
Accelerated Vision 2010 program. Previously, DSM finalized the divestments of
DSM Agro, DSM Melamine, Citric Acid, Stamicarbon as well as its energy
interests. Total divestment proceeds - including the proceeds from the intended
sale of DSM Elastomers - are expected to be about ? 1.2 billion.
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: "The sale of DSM
Elastomers completes our Vision 2010 strategy to become a focused Life Sciences
and Materials Sciences company. This transformation has been achieved within our
desired timeframe and at favorable conditions for our shareholders and
employees. DSM has now entered a new era focused on driving growth and returns
with enhanced earnings quality and confidence in meeting our medium-term
targets."
"We look forward to welcoming DSM's professional EPDM team as well as its
impressive assets to our core synthetic rubber activities," said Axel C.
Heitmann, LANXESS CEO. "The transaction will also be an important step towards
our goal of achieving roughly EUR 1.4 billion EBITDA pre exceptionals in 2015."
Nico Gerardu, Member of the DSM Managing Board and responsible for the Base
Chemicals and Materials cluster, commented: "Despite very challenging market
conditions since we announced our intention to divest DSM Elastomers, we
succeeded in announcing this sale within the timeframe of Vision 2010, as
originally planned. I am very pleased that LANXESS has agreed to become the new
owner for DSM Elastomers as there is a great strategic fit. I would like to
thank all DSM Elastomers employees for their ongoing support and substantial
contribution to DSM."
DSM Elastomers produces a range of synthetic rubber polymers (ethylene propylene
diene monomer or EP(D)M, under the brand name Keltan(®). EP(D)M is used in many
products, such as cars and other transportation vehicles, white goods, various
industrial products and construction materials. It is also used as a motor-oil
additive and waterproof covering for roofs. Production plants for Keltan are
based in Sittard-Geleen (Netherlands) and Triunfo (Brazil). The business is
expected to achieve sales of about EUR 380 million in 2010.
Additional information
Today DSM will hold a conference call for the media from 08.00 AM - 08.30 AM CET
and a conference call for investors and analysts from 09.00 - 09.30 AM. Details
on how to access these calls can be found on the DSM website, www.dsm.com. Also,
more information can be found in the presentation that can be downloaded from
the Investors section of the DSM website.
LANXESS
LANXESS is a leading specialty chemicals company with sales of EUR 5.06 billion
in 2009 and currently around 14,500 employees in 23 countries. The company is
represented at 42 production sites worldwide. The core business of LANXESS is
the development, manufacturing and marketing of plastics, rubber, intermediates
and specialty chemicals.
DSM - the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates solutions that nourish, protect and improve performance.
Its end markets include human and animal nutrition and health, personal care,
pharmaceuticals, automotive, coatings and paint, electrical and electronics,
life protection and housing. DSM manages its business with a focus on the triple
bottom line of economic performance, environmental quality and social
responsibility, which it pursues simultaneously and in parallel. DSM has annual
net sales of about ?8 billion and employs some 22,700 people worldwide. The
company is headquartered in the Netherlands, with locations on five continents.
DSM is listed on Euronext Amsterdam. More information: www.dsm.com
For more information:
DSM Corporate Communications DSM Investor Relations
Herman Betten Hans Vossen
tel. +31 (0) 45 5782017 tel. +31 (0) 45 5782864
fax +31 (0) 45 5740680 fax +31 (0) 10 4590275
e-mailinvestor.relations(at)dsm.com
e-mail media.relations(at)dsm.com
Presentation-pdf:
http://hugin.info/130663/R/1471966/408590.pdf
Press release-pdf:
http://hugin.info/130663/R/1471966/408589.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DSM N.V. via Thomson Reuters ONE
[HUG#1471966]
Unternehmensinformation / Kurzprofil:
Datum: 14.12.2010 - 07:16 Uhr
Sprache: Deutsch
News-ID 49662
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