DSM to acquire NeoResins from Avecia
Royal DSM N.V. and Avecia announced Dec. 14 that DSM intends to acquire NeoResins, the coating resins business of Avecia. It is anticipated that the closing will take place in the first quarter of 2005. The acquisition fits perfectly in DSM's strategy and means a substantial strengthening of DSM's coating resins business, part of the company's Performance Materials cluster. NeoResins will form part of the business group DSM Coating Resins and will trade as DSM NeoResins.DSM will pay Avecia a transaction price of $685 million in cash. The transaction comprises the entire NeoResins business on a cash and debt free basis, including the acquisition of shares in 14 legal entities. NeoResins' sales in 2004 are expected to be $360 million. The company employs 635 people.