11 July 2011 15:51 [Source: ICIS news]
LONDON (ICIS)--Lonza would divest Arch Chemicals’ performance products businesses if its $1.4bn (€980m) bid for the US-based biocides maker was successful, the companies said on Monday.
The business segment had sales of $186m and is viewed as “non-core” by Lonza, a Switzerland-based life sciences group which bid to acquire US-based Arch to provide a global microbial products platform.
Arch Chemicals says its is actively involved in selling the larger urethanes business within the operational segment, which also includes a hydrazine business with annual sales of less than $20m.
The urethanes business supplies polyols for coatings, adhesives, sealants and elastomers and glycols for antifreeze, cleaning products and consumer goods.
Arch Chemicals’ website says that the performance products segment includes hydrazine propellants and hydrates.
Lonza’s friendly bid for Arch Chemicals has been described as “The next significant step in building Lonza’s life sciences platform,” by Lonza CEO Stefan Borgas.
“Arch is almost a pure play microbial products company,” he said. “The performance products business is up for divestiture, and Lonza will follow that logic.”
($1 = €0.70)
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