Degussa completes metallurgical chem exit with ESM sale

24 October 2005 15:53  [Source: ICIS news]

LONDON (ICIS news)--Degussa has agreed to sell its US metal desulphurisation business ESM Group to American financial investment company Platinum Equity for $55m (Euro46m), the Germany specialty chemical company said on Monday.

Completion of the deal, scheduled to take place before the end of November, will mark Degussa's exit from metallurgical chemicals.

Degussa, the world's largest specialty chemicals company, last year sold its foundry, steel and continuous casting powder businesses as part of its strategy of focussing on specialty chemicals.

EMS, which employees 275 people and had sales last year of around $150m, offers to the steel industry products and services for hot metal desulphurisation, caster segment maintenance, equipment design and manufacture. Its customers are almost entirely in the North American steel industry, although it also supplies specialty magnesium to non-steel related industries.

"ESM is a profitable company with long-term customer relationships and leading technology, led by an experienced and capable management team," said Platinum Equity's senior vice president Jacob Kotzubei.

Platinum, which manages 21 businesses with sales of about $8bn, has now announced six acquisitions this year.

The ESM deal is the latest in a series of disposals by Degussa. It agreed last month to sell its food ingredients unit to US food and agriculture group Cargill for Euro540m and is currently in negotiations to sell its water chemicals business. Both businesses are part of Degussa's performance chemicals division and have been on the market for some time. Water chemicals had sales last year of Euro166m and employs about 530 people.

By: Neil Sinclair
+44 20 8652 3214

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