2012-12-14 08:37:13 -
Stock exchange release
December 14, 2012 at 9.30 (CET+1)
Kemira Oyj signed an agreement today to sell its food and pharmaceutical
businesses together with its acetate based chemicals business to Niacet (Niagara
Falls, USA). These businesses are a part of Kemira's ChemSolutions segment. All
shares of Kemira ChemSolutions BV, including the manufacturing site in Tiel
(NL), will be transferred from Kemira Oyj to Niacet Corp. The other businesses
of the ChemSolutions segment, including the chemical, feed and de-icing
business, which are linked to Kemira's formic acid production in Oulu (Finland),
will stay within Kemira.
The businesses sold have a combined revenue of approximately EUR 50 million. 90
employees will be transferred to Niacet as part of the transaction which is
expected to close on January 31, 2013.
The agreed transaction price is
EUR 82 million and will impact Kemira's cash
flow positively in the first quarter of 2013. Kemira will undertake a non-
recurring write-down related to the transaction of approximately EUR 18 million,
impacting Kemira's reported EBIT in the fourth quarter of 2012.
- In accordance with its strategy, Kemira focuses on products and applications
for water quality and quantity management. ChemSolutions's food, pharmaceutical
and acetate based chemicals businesses are not part of our core business. There
are more synergies for these businesses with Niacet's current portfolio and
Niacet is committed to develop the business further, said Wolfgang Büchele,
Kemira's President and CEO.
- We are currently a leading producer of propionates and acetates in the US
focusing on the bakery and pharmaceuticals industry. The agreed deal fits
perfectly into our strategy to become a global player in the chosen industries.
This is a very exciting opportunity for Niacet and we believe it will position
us for continued success and growth both in Niagara Falls and at our new
facility in the Netherlands, once the agreement is finalized, said Kelly
Brannen, Co-Managing Director of Niacet. To assure a seamless transition for
customers and to welcome the Tiel employees to the Niacet family, Larry Montani,
Co-Managing Director of Niacet, will relocate to Tiel.
For more information, please contact
Frank Wegener, President, ChemSolutions
Tel. +31 344 63 91 10
Matti Lapinleimu, VP, M&A
Tel. +358 10 862 1786
Tero Huovinen, Director, Investor Relations
Tel. +358 10 862 1980
Earl Wells, e3communications
Tel. +1 716 553 5225
Kemira is a global over two billion euro water chemistry company that is focused
on serving customers in water-intensive industries. The company offers water
quality and quantity management that improves customers' energy, water, and raw
material efficiency. Kemira's vision is to be a leading water chemistry company.
Established in 1924, Niacet has been a family owned since 1978. The company
produces propionates, acetates, MCAA and other emulsifiers focused on the bakery
and pharmaceutical industry.
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Source: Kemira Oyj via Thomson Reuters ONE