A lot of chemicals
26 Apr 2004
The US-based Rockwood Specialties Group is to acquire four businesses of German-based Dynamit Nobel, forming a new specialty chemicals group with combined revenue of $2.5 billion.
To create this worldwide group, affiliates of Rockwood will acquire the Sachtleben, Chemetall, CeramTec and DNES Custom Synthesis divisions of Dynamit Nobel, which is the chemical arm of mg technologies AG, of Frankfurt.
The equity for the transaction will be provided by Rockwood's internal resources, its existing majority shareholder Kohlberg Kravis Roberts LP (KKR) and by CSFB Private Equity, the global private equity arm of Credit Suisse First Boston.
The deal will create one of the world's largest specialty chemical companies, with Europe representing 53% of the combined sales and the US contributing 34%.
The four businesses acquired had a total revenue of $1.6 billion in 2003. They are focused on highly specialised markets and products such as white pigments (Sachtleben Chemie, Duisburg), surface treatment and lithium chemicals (Chemetall, Frankfurt/Main), ceramics (CeramTec, Plochingen) and pharmaceutical intermediates (DNES Custom Synthesis consisting of DNSC, Finorga and Rohner).
Rockwood, which reported sales of $800 million in 2003, focuses on niche markets in inorganic pigments, wood surface treatment, clay additives, water treatment chemicals, specialty compounds, electronic chemicals and advanced materials. It operates 40 facilities in North America, Europe and Asia.
The completion of the transaction is subject to approval by mg technologies' Supervisory Board and shareholders and to regulatory approvals.
