ARNHEM/OSS, The Netherlands, Dec. 9, 2002 (PRIMEZONE) -- Akzo Nobel's (Nasdaq:AKZOY) business Diosynth has reached an agreement on the principal terms to acquire GlaxoSmithKline's (GSK) manufacturing facility in Montrose, Scotland. The planned acquisition will increase Diosynth's production capacity of pharmaceutical ingredients. Financial terms were not disclosed. The deal is expected to be signed and completed early in 2003.
"We are looking forward to a successful completion of this deal. An acquisition like the Montrose facility is in line with Akzo Nobel's commitment to grow its Pharma businesses and maintain growth momentum," said Toon Wilderbeek, Member of Akzo Nobel's Board of Management responsible for Pharma. "We have recently announced a number of steps we are taking to achieve that. A selected acquisition like Montrose is one of them. The extra capacity from the facility will provide a secure basis for Diosynth to meet demand for pharmaceutical ingredients arising from Akzo Nobel's human and veterinary pharmaceutical businesses -- in addition to custom from third parties. With the purchase of the Montrose facility, we would get that capacity and avoid large capital expenditures in existing plants."
Johan Evers, General Manager of Akzo Nobel's business unit Diosynth, commented: "The Montrose facility will significantly increase our production capacity for active pharmaceutical ingredients (APIs) by complex organic chemical synthesis. Montrose employs a highly skilled workforce with know-how and long experience in working with APIs, offering a good fit with Diosynth's activities. "Montrose also has an impressive list of regulatory approvals that parallel those held by our Oss site, adding strategic depth to our ability to ensure continuity of supply to major customers. This, the supply contract with GSK that would come with the site, and the workforce's good health, safety and environment record make it an attractive prospect for Diosynth to incorporate the facility into its worldwide network of sites."
The Montrose facility currently produces pharmaceutical ingredients for a variety of GSK's products, including treatments for respiratory problems, skin conditions, highly infectious diseases, cardiovascular complaints and cancer.
The deal is expected to secure around 500 jobs. The Montrose facility currently has a workforce of around 700. It is expected that the reduction in headcount will be achieved by voluntary redundancies, although compulsory redundancies cannot be ruled out. Discussions with the workforce and their representatives will commence as soon as is practicable.
Note for the Editor
Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2001 totaled EUR 14 billion. The Company currently employs over 67,000 people in more than 80 countries. Financial results for the full-year 2002 will be published on February 11, 2003.
Diosynth, a business unit of Akzo Nobel, is a science-driven and technology-based manufacturer of complex active pharmaceutical ingredients. The company's expertise is complex organic chemistry, extractions, cell culture, fermentation and chromatographic purification, including HPLC. These technologies are used on an industrial scale to manufacture steroids, synthetic peptides, opiate analogues, carbohydrates, heparin and recombinant proteins, as well as proprietary innovator products. Diosynth's operations are backed by a large development organization, strong commitment to Good Manufacturing Practice (cGMP) and strict adherence to HSE legislation. Diosynth is headquartered in Oss, the Netherlands, has about 3,000 employees and achieved sales in 2001 of EUR 488 million.
Internet: www.akzonobel. com www.diosynth.com www.gsk.com For more information please contact: Akzo Nobel N.V. Ian Cressie, Manager Corporate Communications tel. +31 26 366 4343 This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: www.waymaker.net/bitonline/2002/12/09/20021209BIT00710/wkr0001.doc www.waymaker.net/bitonline/2002/12/09/20021209BIT00710/wkr0002.pdf