MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, announces it has reached agreement with Standard Investment for the sale of DSM Synres, said the company in its press release.
Subject to customary approvals and notifications, the transaction is expected to close in Q1 2015. Financial details will not be disclosed at this time.
DSM Synres produces solvent-borne alkyd and acrylic coating resins at its site in Hoek van Holland (Netherlands) for the global coatings, adhesives and graphic arts markets since 1947. DSM Synres realizes sales of approximately €50 million with around 80 employees. All employees will on the closing date transfer to the new owner. Under the new ownership, Synres will continue to focus on solvent-borne coating resins for the global market.
The sale of DSM Synres is in line with DSM’s strategy for its Performance Materials cluster to improve performance via among other things upgrading its portfolio. In coating resins DSM is focusing on sustainable technologies such as water-based, powder and UV-curing coatings for end markets including decorative paints, high-end flooring, industrial wood, graphic arts and numerous metal applications.
Standard Investment, based in Amsterdam, is a hands-on private equity firm focused on small and medium-sized enterprises in the Netherlands and Belgium. Since its establishment in 2004, the firm has acquired a portfolio of 18 companies.
As MRC reported previously, Royal DSM reported a sharp decline in third-quarter net profit, despite strong performance in all segments. Looking ahead, the company said its full-year 2014 outlook is in line with current market expectations. For the third quarter, net profit decreased 21% to EUR93 million from EUR117 million last year. Net earnings per share was EUR0.51, down from EUR0.65 in the previous year.
Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
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