Degussa sells vitamins to Reilly
1 Sep 2003
Degussa is to transfer it's vitamin B3 manufacturing business in Antwerp, Belgium to Reilly Industries' wholly owned Belgian subsidiary, Reilly Antwerp N.V.
The purchase price was not disclosed; however, in 2002 Degussa generated millions of Euros in sales from the business.
The parties have signed all contracts necessary to complete the transaction and are now only waiting for approval from the Belgian government.
Until the approval is obtained, the vitamin B3 products from the facility will be manufactured exclusively for Degussa. Once it is approved, Degussa will sell the vitamin B3 products from the plant into the feed market as an agent for Reilly.
The transaction will have no direct impact on Reilly's Indianapolis operations since vitamin B3 production will remain in Antwerp. 'In Indianapolis we currently produce raw materials for Degussa's vitamin B3 business,' said Reilly's Vice President Jacqueline Simmons. 'It is our intention to continue to make those raw materials in Indianapolis,' she added.
Reilly and Degussa have had a relationship since 1982 when both companies formed joint ventures for the production and sale of vitamin B3 in North America and Europe.
