Apr 20 2004
MG Technologies AG sells its participation in Dynamit Nobel AG, excluding the plastics business, which is currently in negotiations with separate bidders. The purchase price amounts to Euro 2.25 billion. The acquirer is Rockwood Specialties Group Inc., a U.S.-based specialty chemicals company. The transaction does not include the plastics division, since it is predominantly an automotive supplier.
To finance the acquisition, Rockwood will conduct a capital increase, which will be backed by Kohlberg Kravis Roberts & Co. L.P. (KKR), a leading private equity company, and Credit Suisse First Boston Private Equity (CSFB Private Equity).
The four business units to be divested are CeramTec, Chemetall, Sachtleben and DNES (Custom Synthesis). With annual sales of Euro 1.5 billion they represent about two thirds of Dynamit Nobel’s overall sales and more than three quarters of its operative cash flows (EBITDA) in fiscal year 2003.
An agreement to this effect was notarized in the early morning. Financing for the transaction is already secured. Closing of the transaction is planned for the third quarter of 2004. Completion will be subject to approval by the supervisory board and annual general meeting of mg, as well as by the relevant antitrust authorities.
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