DSM to divest DSM Deretil in management buy-out

21-Nov-2008 - Netherlands

Royal DSM N.V. announced that it has reached an agreement with the management of DSM Deretil on a management buy-out. DSM Deretil is a business unit of DSM anti-infectives. Financial details will not be disclosed.

This divestment fits in the strategic review of DSM Anti-Infectives as announced in June 2007. DSM believes the greatest value will be generated through a partnering strategy combined with innovation initiatives and restructuring measures. The review opened possibilities for divestments of separate businesses, such as DSM Deretil.

Jan Zuidam, Deputy Chairman of the Managing Board of Directors of Royal DSM said: "This transaction gives better chances for DSM Anti-Infectives to fully focus on its core future activity as a leading player in generic API's, and for Deretil to focus on the specific dynamics of the side chain business. This is a good move for both parties, and we are convinced this will in the near future turn out a win for all involved."

Deretil will completely focus on its core business: the marketing, sales and manufacturing of side-chains for the production of Active Pharmaceutical Ingredients (API's). Lluis Franquesa, president of Deretil: "We are proud that DSM has put the trust in us to take over full responsibility and ownership of Deretil. We as management team of Deretil are fully aware of our responsibilities towards, our people, our customers and the society in which we operate, and are fully prepared to take this responsibility. We will continue as planned the previously announced restructuring of the manufacturing base, involving the closure of one of the plants on the Villaricos site in Spain and moving the production from that plant to China."

There is no significant impact on the employees of Deretil expected as direct consequence of this management buy-out. The effect of the sale of DSM Deretil on DSM's total net sales will be approximately EUR 35 million. The book result of the transaction is, on balance, not expected to be material.

https://www.chemeurope.com/en/news/90008/dsm-to-divest-dsm-deretil-in-management-buy-out.html