DSM announces 3.85 bln euro sale of engineering materials business (updated)
31/05/2022 07:52
(Adds details)
AMSTERDAM, May 31 (Reuters) - Dutch bioscience and foods
company DSM on Tuesday announced the sale of its engineering
materials subsidiary for 3.85 billion euros ($4.13 billion) to
private equity firm Advent International and German chemicals
company Lanxess LXSG.DE .
The announcement came shortly after DSM said it intended to
merge with Swiss peer Firmenich. urn:newsml:reuters.com:*:nL1N2XN07F
Advent and Lanxess plan to combine DSM's engineering
materials business with Lanxess' high performance materials
business under a joint venture in which Advent will own a 60%
stake and Lanxess a 40% stake.
"We are forging a strong global player in the field of
high-performance plastics," said Lanxess CEO Matthias Zachert in
a statement. "The portfolios, value chains and global
positioning of the two businesses complement each other
perfectly."
DSM has been in the process of selling its materials
division since September. DSM co-chief executive Geraldine
Matchett had said at a press conference early on Tuesday about
the Firmenich merger she expected more news on the engineering
subsidiary "soon".
The DSM engineering division manufactures high-density
polyethylene thermoplastics used in food packaging to
electronics.
DSM had said it considered the operations non-core as it
plans to focus on health and nutrition business.
($1 = 0.9313 euros)
(Reporting by Toby Sterling, editing by Ed Osmond, Kirsten
Donovan)
((toby.sterling@thomsonreuters.com;))