DSM completes acquisition of NeoResins from Avecia
Royal DSM N.V. completed the acquisition of NeoResins, the coating resins business of Avecia. The intention of this acquisition was announced on 14 December 2004. Necessary approvals have been obtained from the relevant authorities. The acquisition fits perfectly in DSM's strategy and means a substantial strengthening of DSM's coating resins business, part of the company's Performance Materials cluster.
DSM has paid Avecia a transaction price of EUR 515 million in cash. The transaction comprises the entire NeoResins business on a cash and debt free basis. NeoResins' sales in 2004 were around EUR 270 million with an EBITDA of approximately EUR 52 million. The company employs 635 people. The acquisition will be earnings per share enhancing as of year one.
NeoResins will form part of the DSM Coating Resins Business Group and will be trading, within DSM, as DSM NeoResins. The combination of DSM Coating Resins and NeoResins will create a leading global player with a broad product portfolio of strong, developing chemistries and product groups including environmentally friendly technologies such as water-borne resins, powder coating resins and UV curable coatings. The combined competencies will put DSM in an excellent position to exploit both specialist niche markets and the overall trend towards more environmentally friendly coating products.
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