DSM To Acquire Leading Position In Vitamin Supply Market With Roche Deal
This article was originally published in The Tan Sheet
Executive Summary
Dutch life sciences and performance materials producer DSM will enter the vitamin and carotenoid supply business at the top with the planned acquisition of Roche's Vitamins and Fine Chemicals division
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DSM and Roche Vitamins
FTC clears $1.89 bil. sale of Roche Vitamins & Fine Chemicals Unit to Dutch firm DSM under terms of proposed consent agreement announced Sept. 23. Agreement calls for combined firm to divest its phytase enzyme business for swine and poultry food to BASF. Public comments are being accepted until Oct. 22, after which FTC will vote to finalize agreement. DSM, Roche must wait for European Commission approval of the merger as well. Deal was first announced in September 2002 (1"The Tan Sheet" Sept. 9, 2002, p. 6)...
Roche vitamins deal
DSM acquires Roche's vitamins, carotenoids and fine chemicals business for roughly $2.09 bil. (€1=$1.07), firms say Feb. 10. The original $2.24 bil. price tag agreed upon in September was lowered due to the "continued slow-down of the world's economies and the weakening" of the U.S. dollar versus the Swiss Franc, "which both had a negative impact on the vitamin business performance compared to earlier forecasts," firms say (1"The Tan Sheet" Sept. 9, 2002, p. 6). DSM will pay Roche roughly $1.99 bil. in cash and $107.4 mil. in DSM stock. Roche will take an impairment charge of $1.2 bil. in its 2002 results and will increase its provisions for liabilities relating to vitamin price-fixing charges. The transaction is slated to close in Spring pending approval by antitrust authorities...