Kemira's acquisition of the specialty chemicals company Verdugt BV has been completed after the approvals by the competition authorities. The transaction was made between Kemira Oyj, the international private equity firm CVC Capital Partners and the company's operative management. With the acquisition of Verdugt, Kemira's sales of organic acids and derivatives will increase by threefold compared with previous levels to over EUR 170 million. The deal will also open up new growth opportunities for the company both commercially and geographically.
The deal is worth approximately EUR 145 million and is expected to have a positive effect on Kemira's earnings per share from the first full year of operations.
The acquisition of Verdugt is in line with Kemira's strategy of advancing increasingly towards products with added value. Through this deal Kemira will achieve the position of global leadership in the production and marketing of organic acid derivatives. Kemira currently holds the position of the second biggest producer of formic acid and its derivatives world-wide.
Verdugt produces derivatives of formic, propionic, acetic and lactic acids. Owing to their anti-microbial properties these products are mainly used in the food and animal feed industries. Furthermore the products have various specialty applications in the pharmaceutical and chemical industries.
The net sales of Verdugt in 2004 were over EUR 120 million. The company's main production plants are located in Tiel, the Netherlands with a smaller unit in Barcelona, Spain. The company employs approximately 130 persons.
The new strategic business unit, Organic Acids and Salts, will be led by Verdugt's Managing Director Richard J. Andre and the unit will belong to the Industrial Chemicals Business Area. The net sales of the Industrial Chemicals Business Area are approximately EUR 400 million which represent 24% of Kemira's net sales.
For further information please contact:
Kemira Oyj, tel. +358 10 8611
Business Area Industrial Chemicals
Harri Kerminen, President
Tel. +358 10 862 1589
Mobile +358 500 817 230
Verdugt BV
Richard J. Andre, Managing Director
Tel. +31 344 615 224
Mobile +31 6 5128 3857