Bayer plans to sell Rhein Chemie to Advent International
Leverkusen 04 October, 2002 - Bayer AG intends to sell its subsidiary Rhein Chemie Rheinau GmbH, Mannheim, Germany, to a group of financial investors advised by Advent International Corporation, Boston, for EUR 215 million, including the assumption of debt. The transaction would include the wholly owned subsidiary iSL-Chemie GmbH & Co. KG of Kürten, Germany, as well as Rhein Chemie affiliates in the United States and Japan and a Chinese joint venture in which Rhein Chemie owns a 90 percent interest. It is planned to complete the sale at the beginning of November, subject to the approval of the relevant antitrust authorities.
"Under this new ownership, Rhein Chemie would have excellent prospects of further expanding its strong market position," commented Bayer AG Management Board Chairman Werner Wenning. In December 2001, Bayer announced its intention to divest Rhein Chemie and other subsidiaries so as to focus more closely on its core businesses. The sale of Holzminden, Germany-based subsidiary Haarmann & Reimer to the financial investor EQT was completed only a few days ago.
Founded in 1889, Rhein Chemie has been a subsidiary of Bayer AG since 1971. The company is an internationally successful supplier of specialties to the rubber, lubricant and plastic industries. Its 1,100 employees in Germany and around the world, including 550 in Mannheim, generated global sales in 2001 of approximately EUR 320 million. Rhein Chemie operates production facilities in Germany, the United States, China, Japan and other countries.
With more than 50 investments worldwide in the chemical and pharmaceutical industry, Advent International Corporation has extensive experience in this sector. Its investments in European companies include Vinnolit in Germany, Materis in France and Pemco in Belgium.
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