DSM to sell Citrique Belge to Adcuram
The intended sale of Citrique Belge is a result of DSM’s ambitions to focus on Life Sciences and Materials Sciences. As announced in September 2007, DSM’s citric acid interests do not fit with this focus. After the closure of DSM’s citric acid manufacturing plant in Wuxi (China) in Q1 2009, DSM’s citric acid business consisted only of the Citrique Belge operations, located in Tienen (Belgium).
Both parties have agreed not to disclose financial details at this time. Net sales of Citrique Belge in 2009 were above € 100 million. DSM expects to report a book loss of around € 40 million as a result of the transaction, albeit the transaction represents a very reasonable multiple on profits made by the unit. Approximately 250 employees will transfer to the new owner upon closing.
Stephan Tanda, Member of the DSM Managing Board and responsible for Citrique Belge, commented: “The sale of Citrique Belge is yet another step forward for DSM in its ongoing transformation towards a Life Sciences and Materials Sciences company. With the intended sale to Adcuram, a privately owned group with a long-term approach, I have every confidence in a good future for the company under new ownership. I would like to thank all Citrique Belge employees for their ongoing support and substantial contribution to DSM.”
Thomas Probst, Member of the Adcuram Board commented: “With the acquisition of Citrique Belge, we follow our strategy to invest in leading chemical businesses. Also, it shows our commitment to invest outside Germany. We will invest heavily in Citrique Belge to grow the business and to further improve its leading position in the industry. We are proud that DSM chose Adcuram as the best new owner of this reputable company.” After transactions with Bayer and Dow, this is Adcuram´s third acquisition from a leading international chemical group.
Citrique Belge is one of the major producers of citric acid world-wide. The product is used as a pH regulator and flavor enhancer in soft drinks, fruit juices, sweets, jams and jellies. It is also used as a binding agent in biodegradable detergents and in other applications such as antioxidant. Citrique Belge has been producing citric acid since 1929.
Adcuram is an international, privately owned industrial holding. Adcuram acquires non-core businesses of large conglomerates and actively develops them with a long-term, entrepreneurial perspective. The chemicals sector is one of Adcuram’s investment priorities. Currently, Adcuram companies – acquired from international groups such as Bayer, Dow Chemical and Schott – account for ~ € 500 million in sales and employ more than 3,000 employees world-wide. Acquisitions are supported by the group’s financial strength and the financial commitments of its private owners.