PITTSBURGH, Feb. 5 /PRNewswire/ -- Bayer AG, Leverkusen, Germany and DSM,
Heerlen, Netherlands, have reached an agreement under which Bayer will acquire
DSM's global Transparent Sheet business, which produces and sells transparent
polycarbonate (PC) and polyester (PET) sheet for use in building and
construction, communication and industrial markets. The Transparent Sheet
business, which forms part of DSM Engineering Plastic Products, has annual
sales of $140 million and employs about 300 people. The business is comprised
of two operating units: Axxis N.V., based at Tielt, Belgium, and DSM
Sheffield Plastics, based at Sheffield, Mass., USA. The deal is subject to
approvals by regulatory authorities and is expected to be completed in March
1999. Financial terms were not disclosed.
With this acquisition Bayer will strengthen and globalize its position in
the market of transparent polycarbonate sheet. With an annual capacity of
1.1 billion pounds, Bayer is a leading polycarbonate producer. Engineering
thermoplastics is one of the core businesses of Bayer Group showing above
average growth rates.
The Bayer Plastics Business Group has annual sales of some $3 billion and
more than 6,000 employees. The business group's main activities are the
production and marketing of engineering thermoplastics with a volume of about
2.2 billion pounds per year. Its aim is to expand the leading position in
terms of technology and quality in this dynamically developing market.
The Transparent Sheet business has demonstrated good growth and
profitability; however, DSM has decided to divest this business since it is
not a core activity. DSM is not active in the production of the raw materials
used in this business, and further growth would require high investments. This
divestment is part of DSM's corporate strategy aimed at reinforcing its core
activities in order to strengthen or maintain leadership positions.
DSM's Engineering Plastics Products business group has annual sales of
more than $360 million and employs about 2,000 people worldwide. The business
group has production sites in Europe, North America and the Far East. DSM
Engineering Plastic Products is part of the Dutch chemical group DSM N.V.,
which has a workforce of 23,000 and sales of about $7.3 billion.
Bayer Corporation is a research-based company with major businesses in
health care and life sciences and chemicals. The company had 1997 sales of
$9.3 billion and employs more than 26,000 people. Bayer Corporation is
investing $9 billion in capital expenditures and research and development from
1995 through the year 2000. 1998 capital investment and R&D expenditures are
projected to total $1.7 billion. Bayer Corporation, with headquarters in
Pittsburgh, is a member of the worldwide Bayer Group, a $32 billion chemical
and pharmaceutical company based in Leverkusen, Germany.
SOURCE Bayer Corporation
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http://www.prnewswire.com/comp/092575.html or fax,
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CONTACT:
Sean Kelly of Bayer Corporation,
412-777-2491, or Guner Forneck of Bayer AG, + 49 214 30 50446, or
Bert Holtkamp of DSM, +31 4557 82423
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