Raisio Chemicals sold for 475 million Euros

Raisio Group today signed a deal to sell its subsidiary, Raisio Chemicals, to Swiss-based Ciba Specialty Chemicals for 475 million Euros.

Raisio Group has today signed a deal to sell its subsidiary, Raisio Chemicals, to Ciba Specialty Chemicals for 475 million Euros.

Ciba Specialty Chemicals is an international, Swiss based specialty chemicals company operating in more than 120 countries. In 2003 the company generated a turnover of around 4.3 billion Euros.

Finalising the deal is subject to the approval of merger control authorities. The final closing date depends on the length of the regulatory review, but is expected in the second or the third quarter of 2004.

Mr Rabbe Klemets, CEO of Raisio Group commented: ‘Our main target for the divestment of Raisio Chemicals was to find a good home for it with the best possible financial outcome for Raisio Group and its shareholders.

‘This divestment significantly increases our financial flexibility and makes Raisio Group a virtually debt-free company. It enables Raisio Group to strongly focus on food and feed, functional food ingredients and food diagnostics businesses. By investing in these core competence areas Raisio Group will further develop as a specialist in well-being.’

Mr Armin Meyer, Chairman and CEO of Ciba Specialty Chemicals said: ‘This move will create a top tier player in the paper chemicals supply field, with a broader line of products and also a much wider geographic reach.

‘By combining our strong R&D operations, near key European customers, we will be better positioned to meet their future needs.’