HEERLEN,, Netherlands, Sept. 30, 2005 (PRIMEZONE) -- DSM and Lion Chemical Capital LLC today announce the agreement on the sale of the DSM business unit SBR (styrene-butadiene rubber) to Lion Chemical Capital LLC. The transaction will take the form of an asset deal.
The sale is a result of DSM's corporate strategy, Vision 2005: Focus & Value, which has transformed the company into a specialty company focusing on life science products and performance materials over the last few years. As a consequence, the SBR business no longer fits into DSM's portfolio.
Lion Chemical Capital is pleased to have reached agreement on acquiring DSM SBR. Lion is committed to providing high quality products and exceptional service to its customers and plans to grow the business in the near future. It recognizes the dedicated workforce at the site and is determined to promote a safe and environmentally responsible workplace.
"Throughout the selling process we focused on finding a partner that recognizes and believes in the potential of the SBR business activities, and more specifically of our SBR plant in Baton Rouge," says Henk-Jan Koenen, President of DSM Copolymer Inc. "The future interests of all stakeholders in the business are secured by the transaction of our SBR unit to Lion."
DSM and Lion Chemical Capital LLC expect to close the transaction in Q4 2005, subject to regulatory and legal approvals.
Lion Chemical Capital
Lion Chemical Capital is a private equity firm focused on investing in premier businesses operating in the chemical and related industries. Lion leverages its founders' extensive experience in the chemical industry, executive management, private equity and investment banking. Target investments are highly selective and possess key attributes such as market and technological leadership and strong management.
In 2004, Lion acquired the largest independent rubber compounding business in North America from PolyOne Corporation. The business, Excel Polymers, has over USD 400 million in revenues and includes eight plants located in the US, Mexico, U.K. and China. Excel Polymers provides effective solutions to both high volume and the most challenging technical rubber applications. The businesses will be operated as independent operations.
DSM SBR
DSM SBR is a business unit of DSM Copolymer Inc., based in Baton Rouge, Louisiana, USA. DSM SBR is a manufacturer of synthetic rubber, primarily SBR. SBR is the most widely used type of synthetic rubber in the world, and its largest use being in the manufacture of tires. Other applications for SBR include conveyor belts, vibration dampers, and footwear. Throughout its more than 60-year history, the SBR plant in Baton Rouge has been known as a dedicated and quality supplier.
DSM
DSM is active worldwide in life science products, performance materials and industrial chemicals. The group develops, produces and markets innovative products and services that are designed to raise the quality of life. DSM's products are used in a wide range of end-use markets and applications, including human and animal nutrition and health, cosmetics, pharmaceuticals, the automotive industry, coatings, the construction industry and the electrics & electronics market. The group has annual sales of around EUR 8 billion and employs about 23,000 people worldwide. DSM is a leading world player in many of the markets in which it operates and has plants and facilities on every continent. The company's head office is in the Netherlands. For more information on DSM, please visit www.dsm.com.
For more information:
DSM Corporate Communications DSM Investor Relations Medard Schoenmaeckers Dries Ausems tel. +31 (0) 45 tel. +31 (0) 45 5782864 5782035 fax +31 (0) 45 5782595 fax +31 (0) 45 e-mail 5740680 investor.relations@dsm.com e-mail media.relations@dsm.com
Lion Chemical Capital Peter de Leeuw David de Leeuw tel. +1 (212) 355 5500 fax +1 (212) 355 6283 e-mail pdeleeuw@lionchemicalcapital.com http://hugin.info/130663/R/1013821/158238.pdf
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