Bayer and Degussa sell PolymerLatex to Soros Private Equity Partners

05-Mar-2003

Bayer AG of Leverkusen, Germany, and Degussa AG of Dusseldorf, Germany, are selling PolymerLatex GmbH & Co. KG, their Marl, Germany-based 50:50 joint venture, to the financial investment company Soros Private Equity Partners. The sales price amounts to approx. 235 million euros. The transaction is subject to the approval of the relevant antitrust authorities. The sale of PolymerLatex completes the divestment program which Bayer launched at the end of 2001 as part of its Group-wide reorganization and strategic realignment project. The divestments included the subsidiary Haarmann & Reimer, the 30 percent interest in Agfa, a large proportion of the Bayer company apartments, the generics business in France and Spain and the household insecticide business. In addition, Bayer sold off numerous crop protection products and active ingredients which had to be divested or licensed out as a result of conditions imposed by the anti-trust authorities following the take-over of Aventis CropScience. Through the cash inflow from the divestment program Bayer has been able to cut its net debt, which had increased significantly in 2001 through the acquisition of Aventis CropScience, to less than 10 billion euros by the end of 2002.

In fiscal 2001, PolymerLatex generated sales of 344 million euros with about 730 employees. The joint venture, which was founded in 1996 by Degussa and Bayer, produces latex products in the paper, carpet/moulded foam and speciality applications fields, and holds a leading position among latex suppliers. PolymerLatex has been able to expand its leading market position even further over the past few years thanks to significant investments in its five European production sites, and continuous development of customized products.

Soros Private Equity Partners ("Soros") is a global private equity investor which, together with its affiliates, currently manages in excess of US-Dollar 4 billion of equity capital. Soros has announced that it intends to develop PolymerLatex's operations in the coming years and will consider possible add-on-acquisitions to consolidate its market share.

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