DSM to complete divestment program through sale of DSM Elastomers
The intended sale of DSM Elastomers, producer of EP(D)M rubber under the brand name Keltan®, is a result of DSM's ambition to focus on Life Sciences and Materials Sciences. DSM Elastomers no longer fits with this focus. Earlier this year, DSM sold the business unit Thermoplastic Elastomers (Sarlink®), formerly part of this business group, to Teknor Apex Company.
The price for the DSM Elastomers business represents an EBITDA multiple of roughly 6 based on the expected EBITDA of 2010. DSM expects to report a book profit of more than € 100 million as a result of the transaction upon closing. Approximately 420 employees will transfer to the new owner upon closing.
This announcement represents the final stage of the transformation of DSM that began with the divestment program DSM announced in September 2007 as part of its Accelerated Vision 2010 program. Previously, DSM finalized the divestments of DSM Agro, DSM Melamine, Citric Acid, Stamicarbon as well as its energy interests. Total divestment proceeds - including the proceeds from the intended sale of DSM Elastomers - are expected to be about € 1.2 billion.
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: "The sale of DSM Elastomers completes our Vision 2010 strategy to become a focused Life Sciences and Materials Sciences company. This transformation has been achieved within our desired timeframe and at favorable conditions for our shareholders and employees. DSM has now entered a new era focused on driving growth and returns with enhanced earnings quality and confidence in meeting our medium-term targets."
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