Degussa Divests Its Textile Additives Activities
Second successful divestment project of the year 2002
01-Mar-2002
February 28, 2002
In the course of its strategy to focus on chemicals/order_t/'>specialty chemicals, the Degussa Group of Dusseldorf has sold its Textile additives activities to Giovanni Bozzetto S.p.A., a Filago, Milan-based subsidiary of Rütgers AG, Essen, Germany. Silence has been agreed on the purchase price.
Prof. Utz-Hellmuth Felcht, Management Board Chairman of Degussa, states: "Our Textile Additives unit is a relatively small business, and does not meet our criteria for a high-growth specialty chemicals portfolio. In its new, medium-sized ownership structure, it will have good opportunities for future development, however. Moreover, the sale shows that despite the economically difficult environment, we are consistently implementing our ambitious divestment program with regard to not only major but also minor activities."
In fiscal 2000, the Textile Additives activities of Degussa generated sales of approx. EUR35 million at locations in Krefeld (Germany), the USA, Indonesia and China (including a sales office in Hong Kong) with 137 staff altogether.
Giovanni Bozzetto S.p.A. concentrates on the production of chemicals for the textile industry. In recent years its sales have ranged between EUR50 million and EUR60 million, with three-quarters of these sums being generated in Italy. The Bozzetto Group currently employs 180 staff. The acquisition of Degussa's Textile Additives activities represent an strategically important step forward in the continued internationalization of the Bozzetto Group.
Divestment of the Textile Additives operations is the eleventh successful transaction conducted by Degussa as part of its consistent strategy to focus on specialty chemicals. Since the start of its ambitious divestment program in February 2001, Degussa has sold the equivalent of 77 percent of the total turnover (EUR6.5 billion) of intended disposals.
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