Rockwood Specialties Completes Acquisition of Four Dynamit Nobel Businesses To Form New Global Specialty Chemical Group

09-Aug-2004

Specialties Group, Inc., Princeton (NJ), announced today that it has completed the acquisition of four businesses of Dynamit Nobel, Troisdorf (Germany), to form a new specialty chemicals and advanced materials group with pro forma combined revenue of approximately $2.5 billion in 2003. To create this worldwide group, affiliates of Rockwood acquired the Sachtleben, Chemetall, CeramTec and DNES Custom Synthesis divisions of Dynamit Nobel, which was the chemical unit of mg technologies AG, Frankfurt (Germany).

The four businesses acquired represent total revenue of approximately $1.6 billion in 2003. The businesses are focused on highly specialized markets and products such as white pigments (Sachtleben Chemie GmbH, Duisburg), surface treatment and lithium chemicals (Chemetall GmbH, Frankfurt/Main), ceramics (CeramTec AG, Plochingen) and pharmaceutical intermediates (DNES Custom Synthesis consisting of DNSC, Finorga and Rohner). This transaction establishes one of the world's largest specialty chemical companies, with Europe representing 53 % of the combined sales and the U.S. representing 34 %.

Seifi Ghasemi, Rockwood's Chairman and Chief Executive Officer, said: "We are all excited about the future of these businesses. Rockwood is now a leading global specialty chemicals and advanced materials company with first-class technologies across all businesses. The combination of these businesses will create a global organization with estimated annual revenue of more than $2.5 billion, employ approximately 10,000 people, and have operations in more than 30 countries. We will continue to support organic growth across all of our businesses, look for further complementary acquisitions, and maintain the focus on customer-driven innovation."

The acquisition was funded by affiliates of Kohlberg Kravis Roberts & Co. L.P. (KKR), Rockwood's existing majority shareholder; and affiliates of CSFB Private Equity, part of Credit Suisse First Boston's Alternative Capital Division (ACD); and borrowings under a new senior secured credit facility and a new senior subordinated credit facility.

The credit facilities were arranged by Credit Suisse First Boston, UBS, and Goldman Sachs. Credit Suisse First Boston and UBS served as financial advisors. Clifford Chance and Simpson Thacher & Bartlett LLP served as Rockwood's legal advisors.

https://www.chemeurope.com/en/news/38987/rockwood-specialties-completes-acquisition-of-four-dynamit-nobel-businesses-to-form-new-global-specialty-chemical-group.html