Sydsvenska Kemi sells remaining resins business to Dynea

01 March 2002 13:06  [Source: ICIS news]

LONDON (CNI)--Nordic specialty chemicals group Sydsvenska Kemi announced Friday it has reached an agreement to sell its remaining resins business to Dynea Oy, the parent company of Finnish adhesives company Dynea International.

The resins business, which belonged to Sweden's Perstorp prior to the company's acquisition by Sydsvenska Kemi last June, had annual sales of about SKr950m ($91m/Euro104m) and employs about 340 people.

It consists of formaldehyde-based industrial resins production aimed primarily at the automotive and engineering industries. Its manufacturing units are located in Aycliffe, England; Brebieres, France; Erkner, Germany; and Sao Paolo, Brazil.

Both Sydsvenska Kemi and Dynea are controlled by funds managed by private equity firm Industri Kapital. Sydsvenska Kemi comprises the former businesses of Perstorp and Finland's Neste Oxo.

Financial details of the transaction, which has been approved by the relevant competition authorities, were not disclosed. Sydsvenska Kemi said, however, that accounting firm KPMG has issued a "fairness opinion", on the transaction. The takeover date is 15 March, it added.

Kyosti Siltala, general counsel for Dynea Oy, told CNI the acquisition does not overlap Dynea's existing business and hence no job cuts or plant closures are expected.

Sydsvenska Kemi said the transfer of Perstorp’s resins operations to Dynea Oy was preceded by operational co-operation between the two companies in the resins sector, which was initiated during last autumn (September-November).

Lennart Holm, president of Sydsvenska Kemi and Perstorp, said: "The divestment is in line with our strategy, which involves a focus on specialty chemicals products designed for the paints and coatings industry. By strengthening the synergies between Perstorp and Neste Oxo, and by developing our other growth segments, we expect to increase our growth and profitability."

Risto Lapinleimu, senior vice president for Dynea's industrial resins business, said: "The acquired resins business brings valuable technological expertise in many specialty resins applications. Dynea, in addition to its own areas of expertise, has a unique global position through a worldwide network of production sites and local presence. Thanks to our combined resources we are uniquely placed to meet our customers needs, and above all, offer our services on a global basis."

By: Russell Ong
+44 208 652 3214

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