Rockwood Press Release
Rockwood Specialties Group, Inc. To Acquire Four Dynamit Nobel Businesses To Form New Global Chemical Group
Princeton (NJ), London, Frankfurt/Main
The four businesses acquired represent total revenue of $1.6 billion in 2003. The businesses are focused on highly specialized markets and products such as white pigments (Sachtleben Chemie GmbH, Duisburg), surface treatment and lithium chemicals (Chemetall GmbH, Frankfurt/Main), ceramics (CeramTec AG, Plochingen) and pharmaceutical intermediates (DNES Custom Synthesis consisting of DNSC, Finorga and Rohner).
Rockwood, which reported sales of $800 million in 2003, is a leading global specialty chemicals and advanced materials company. It focuses on niche markets in inorganic pigments, wood surface treatment, clay additives, water treatment chemicals, specialty compounds, electronic chemicals and advanced materials. It operates 40 facilities in North America, Europe and Asia.
Seifi Ghasemi, Rockwood’s Chairman and Chief Executive Officer, said: “We are excited about the combination of these two complementary portfolios. The Dynamit Nobel businesses are highly attractive and profitable companies with advanced technologies and strong market positions. Together we will create a strong, profitable and global specialty chemicals and advanced materials company with sales in excess of $2.5 billion. It will allow the exchange of best practices in the areas of customer service, productivity and commitment to excellence. We will support organic growth, look for further complementary acquisitions and maintain the focus on innovation.”
Todd Fisher, Partner and Managing Director Kohlberg Kravis Roberts & Co. L.P., London, said: “We have been highly supportive of Rockwood to date and look forward to supporting the combined company to become a world leader in quality and innovation in the chemical industry.”
“The deal will build critical mass in all business units and adds end market and geographic diversification”, said Susan Schnabel, Managing Director CSFB Private Equity, London.
Financing for the transaction is being arranged by Credit Suisse First Boston, Goldman Sachs and UBS. The financing is permitted by Rockwood’s existing bonds, which will remain outstanding following the transaction. The financial advisors to Rockwood are Credit Suisse First Boston and UBS and the legal advisors are Clifford Chance and Simpson Thacher & Bartlett.
The completion of the transaction is subject to approval by mg technologies’ Supervisory Board and shareholders and to regulatory approvals.
Rockwood, headquartered in Princeton, New Jersey, USA, is a leading global specialty chemical company with sales of more than $800 million. The company focuses on niche segments of the specialty chemical market, including additives, specialty compounds, electronic chemicals, materials and services. Rockwood Specialties maintains operations in North America, Europe and Asia with a workforce of over 2,500 employees.