The Dutch company DSM is to acquire NeoResins, the environmentally friendly coating technologies business of Manchester, England-based Avecia for 515 million Euros in cash.
The 635 strong NeoResins business will now form part of DSM’s Coating Resins business and will trade as DSM NeoResins.
NeoResins’ sales in 2004 are expected to be around 270 million Euros with an EBITDA of approximately 52 million Euros. DSM says that the acquisition will be earnings per share enhancing as of year one.
The move markes the second sell off for Avecia in as many months. In November, company sold its Special Drug Mixtures (SDM) business to the Copperhead Chemical Company of Tamaqua, Pennsylvania for an undisclosed sum.
The SDM business makes a line of standard and custom nitroglycerin mixtures used in the treatment of angina and congestive heart failure.
DSM anticipates that the closing of the Neoresins deal will take place in the first quarter of 2005.