Kemira plans to float GrowHow fertliser business

LONDON (CNI)--Finnish chemicals group Kemira is planning to float its GrowHow agrochemicals business on the Helsinki stock market.

 

It said Monday that the timing of the listing depends on market developments but could take place as early as autumn (Q4) 2004.

 

 

GrowHow, which has an annual turnover of more than Euro1.2bn ($1.4bn), is one of Europe's largest producers of specialty fertilisers. It is one of Kemira's five core business areas along with paints and coatings, industrial chemicals, pulp and paper chemicals, and water treatment chemicals.

 

Kemira said that a separate listing will improve prospects for continued business development for GrowHow as well as for the parent group Kemira Oyj. Friman said the flotation of GrowHow would probably reduce Kemira group debt - currently about Euro750m - by about Euro200m-300m.

 

"It will make our balance sheet quite a bit stronger and mean we are much better placed to pursue acquisitions in our other core businesses."

 

In a statement, Kemira said GrowHow has been building up its organisation, legal structure, identity and operational model for a long time, with the aim of operating effectively as an independent company.

 

GrowHow recently announced a three-fold increase to Euro25m in first quarter operating profits due to higher fertiliser prices and improved cost efficiency. Sales during the January to March period, however, fell 6% to Euro324m.