DSM to sell Special Products to Arsenal Capital as first divestment following accelerated Vision 2010

04-Mar-2008

Royal DSM N.V. has reached an agreement in principle with Arsenal Capital Partners (United States) on the sale of DSM Special Products BV. It is the first divestment following the accelerated Vision 2010 strategy. The transaction is expected to close in early Q2 2008, subject to regulatory and legal approvals.

DSM expects to realize a net book profit after tax of just above EUR 10 million on the sale, which will be reported as an exceptional item in the income statement. In 2007 the business unit realized sales of EUR 101 million and a slight operating profit.

The sale is a result of the acceleration of DSM's transformation into a Life Sciences and Materials Sciences company. As outlined in the strategic program Vision 2010 - Building on Strengths a number of businesses which do not fit in the strategy, including DSM Special Products, will be divested.

DSM Special Products is the producer of Purox, an ingredient used in food as well as in a range of industrial applications. It also produces an ingredient for VevoVitall®, a product for the animal health market that will remain with DSM Nutritional Products. The supply of this ingredient for VevoVitall® to DSM Nutritional Products will not be affected due to an existing long-term supply agreement. DSM Special Products employs 126 people in Rotterdam and Sittard (Netherlands). They will all transfer to the new owner.

The transaction is subject to various external approvals and will be submitted to the works councils according to the usual procedures.

https://www.chemeurope.com/en/news/78902/dsm-to-sell-special-products-to-arsenal-capital-as-first-divestment-following-accelerated-vision-2010.html