PRTODAY / NewswireToday Free press release distribution service network

Written by / Agency / Source: LANXESS

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

LANXESS to Acquire DSM Elastomers - LANXESS and Dutch company Royal DSM N.V. have reached an agreement in principle involving the sale of DSM Elastomers to LANXESS for EUR 310 million on a cash and debt-free basis
LANXESS to Acquire DSM Elastomers

 

NewswireToday - /newswire/ - Leverkusen, Germany, 2010/12/14 - LANXESS and Dutch company Royal DSM N.V. have reached an agreement in principle involving the sale of DSM Elastomers to LANXESS for EUR 310 million on a cash and debt-free basis. FRA: DE Frankfurt: LXS

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Manufacturing/Robotics Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

• LANXESS to strengthen production technology for EPDM.
• Important step towards mid-term earnings target.
• Future EPDM headquarters to be located in Sittard-Geleen, NL.

DSM Elastomers produces the synthetic rubber ethylene propylene diene monomer (EPDM) under the brand name Keltan.

The price for the DSM Elastomers business represents an EBITDA multiple of roughly 6 based on the expected EBITDA of 2010. The acquisition will be financed by LANXESS out of existing liquidity and is expected to be EPS accretive as of 2011.

The transaction contracts will be finalized once a consultation process with the employees' representatives of DSM in the Netherlands has been completed. The transaction is subject to approval from antitrust authorities. Closing is expected in the first months of 2011.

“We look forward to welcoming DSM’s professional EPDM team as well as its impressive assets to our core synthetic rubber activities,” said Axel C. Heitmann, LANXESS CEO. “The transaction will also be an important step towards our goal of achieving roughly EUR 1.4 billion EBITDA pre exceptionals in 2015.”

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.”

Sittard-Geleen-based DSM Elastomers has approximately 420 employees worldwide and is expected to achieve sales of about EUR 380 million in 2010. DSM operates an EPDM plant in Sittard-Geleen, the Netherlands, with an annual production capacity of 160,000 metric tons. DSM’s other EPDM plant is based in Triunfo, Brazil, with an annual capacity of 40,000 metric tons. LANXESS plans to base the headquarters of the combined EPDM businesses in Sittard-Geleen.

LANXESS’ Technical Rubber Products business unit (TRP), headed by Guenther Weymans, sells EPDM under the brand name Buna EP. LANXESS produces EPDM in Marl, Germany, and Orange, United States, with a combined annual capacity of 120,000 metric tons.

The global rubber market for EPDM is expected to show single-digit percentage growth per annum in the next ten years, driven by rising demand in China and Brazil.

Through the transaction, LANXESS plans to strengthen its technology base by gaining access to the ACE technology. DSM is in the process of implementing this technology on a larger scale at its site in Sittard-Geleen. In comparison to conventional technology, ACE reduces the energy and production costs for EPDM and at the same time broadens the application possibilities of the rubber. LANXESS will evaluate implementing ACE technology into its existing plants.

“Our customers will benefit from a wider range of premium EPDM products,” said Werner Breuers, LANXESS Board Member.

EPDM is used above all in the automobile industry but also in the plastics modification, cable and wire, construction and oil additives industries. Its properties include very low density, good resistance to heat, oxidation, chemicals and weathering as well as good electrical insulation properties.

Additional products in TRP’s portfolio include Polychloroprene rubber (CR), Hydrogenated nitrile rubber (HNBR), Ethylene vinyl acetate rubbers (EVM) and Nitrile Rubber (NBR). TRP is part of LANXESS’ Performance Polymers segment, which recorded sales of EUR 2.4 billion in 2009. Apart from Marl and Orange, the business unit has production sites in Leverkusen, Dormagen (both Germany) and La Wantzenau (France). The business unit has roughly 1,000 employees.


DSM – the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates solutions that nourish, protect and improve performance. Its end markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM manages its business with a focus on the triple bottom line of economic performance, environmental quality and social responsibility, which it pursues simultaneously and in parallel. DSM (dsm.com) has annual net sales of about €8 billion and employs some 22,700 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam.

LANXESS Investor Relations will hold a conference call in English at 16.30 CET, December 14, to discuss the acquisition of DSM Elastomers. LANXESS CEO, Axel C. Heitmann, and LANXESS CFO, Matthias Zachert, will take part in the call. Members of the media can listen in via corporate.lanxess.com/en/investor-relations/.

LANXESS (lanxess.com) is a leading specialty chemicals company with sales of EUR 5.06 billion in 2009 and currently around 14,500 employees in 23 countries. The company is represented at 42 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Manufacturing/Robotics Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: LANXESS

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+] / [Company listed above is a registered member of our network. Content made possible by PRZOOM / PRTODAY indexing services]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Manufacturing/Robotics articles,
CATCH Visitors via Your Competitors Announcements!


LANXESS to Acquire DSM Elastomers

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

LANXESS |
Publisher Contact: Daniel Smith - LANXESS.com 
+49 214 30-75179 daniel-alexander.smith[.]lanxess.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any LANXESS securities in any jurisdiction including any other companies listed or named in this release.

Manufacturing/Robotics via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From LANXESS / Company Profile


Read Manufacturing/Robotics Most Recent Related Newswires:

LANXESS Virkon S Proven to Kill Highly Pathogenic Avian Influenza Strains
BASF to Offer Tailor-made Product Innovation At European Coatings Show
Nexans to Drive Sustainable Transportation At its Annual Technical Conference
Tripp Lite Introduces A New Series of Pre-assembled 40 Gb to 10 Gb Breakout Fiber Patch Panels
Borealis and Asmidal Sign Memorandum of Understanding to Jointly Evaluate Opportunities for Melamine Production in Algeria
SCHOTT’s New Ultra-Thin Glass is the Thinnest, Toughest, Most Eco-Friendly Glass for Consumer Electronics
Hexagon Manufacturing Intelligence Supplies PTB with Leitz PMM-G
Atlas Copco Completes Acquisition of Chinese Self-pierce Riveting Solutions Business
SCHOTT Introduces Superior X-ray Imaging with SCHOTT’s Fiber Optic Faceplates and BOROFLOAT® Glass
PPG Wins Big At 2016 SEMA Show PPG-painted Cars, Trucks Capture Major Awards
Tripp Lite’s Breakthrough 3-Phase Rack ATS PDUs Granted U.S. Patent
Nexans Launches PVC-free MOTIONLINE® HALEX Automation Cables
Volkswagen and BASF Present 'Science Award Electrochemistry' to Dr. William Chueh from Stanford University, California
ITT's Cannon Brand to Introduce Versatile Modular Connector Interface for Heavy Equipment At Bauma China 2016
BASF to Divest Inorganic Specialties Business

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  JobsWare.com

Visit  Triggr & Bloom





 
  ©2016 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)