Royal DSM N.V. and Avecia have announced DSM’s intention to acquire NeoResins, Avecia’s coating resins business. It is anticipated that the closing will take place in the first quarter of 2005.
DSM will pay Avecia a transaction price of €515 million. The transaction comprises the entire NeoResins business on a cash and debt-free basis. NeoResins’ sales in 2004 were expected to reach approximately €270 million. The company employs 635 people.
Peter Elverding, DSM’s managing board chairman described the acquisition as “an excellent fit since it will strengthen DSM’s performance materials portfolio and increase our presence in high-growth specialties.”
He continued, “The acquisition price is perfectly in line with the previously indicated range. With an EBITDA/sales margin of 20%, NeoResins will contribute immediately to DSM’s earnings per share and profitability.”