02 March 2003 12:46 [Source: ICIS news]
LONDON (CNI)--German chemicals and pharmaceuticals group Bayer confirmed on Sunday that plans to sell its specialty chemicals business Rhein Chemie have been abandoned.
A spokeswoman for Bayer told CNI that sale plans had been dropped because of poor market conditions.
She was unable to say how much Bayer had hoped to receive for Rhein Chemie but confirmed that current valuations fell significantly short of expectations.
In October last year Bayer reached an agreement to sell Rhein Chemie for Euro215m (about $232m at current exchange rates) to private equity firm Advent International.
However, this deal collapsed in December. No specific reasons were given although Bayer said in a statement that the sale had been dissolved by common consent after the parties were unable to reach agreement on a number of outstanding points.
Bayer told CNI at the time that it would either try to sell the unit again or re-integrate it with Bayer Polymers.
Rhein Chemie generated Euro322m in sales in 2001and has around 1100 employees.
Headquartered in Mannheim, Germany, Rhein Chemie is an international supplier of technical services and additives to the rubber, plastics and lubricants industries. Rhein Chemie also has a wholly owned subsidiary, ISL-Chemie in Kurten, Germany, affiliates in the US and Japan, and owns a 90% interest in a joint venture in China. All these interests had formed part of the aborted sale to Advent.
Rhein Chemie was originally put up for sale in December 2001 as part of Bayer's plans to focus more closely on core activities.
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