Heerlen, NL, 29 Jul 2009 08:15 CEST
Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Maire Tecnimont S.p.A., a leading international engineering and construction group headquartered in Italy, announce today that they have reached an agreement for the sale of DSM’s urea-licensing subsidiary Stamicarbon B.V. to Maire Tecnimont for a total consideration of €38 million on a cash and debt-free basis. The intended sale is expected to close by Q4 2009, subject to regulatory and other customary approvals and notifications.
Stamicarbon, founded in 1947, is the world market leader in licensing urea technology with over 250 licensed urea plants located in over eighty different countries and a leading market share in new capacity. Urea, mainly used as a fertilizer, is produced from ammonia and carbon dioxide. Stamicarbon realized net sales of €57 million in 2008 and an operating profit of €25 million. In 2008 Stamicarbon’s operating profit was exceptionally high as a result of a number of large contracts closed during the year. The average operating profit for Stamicarbon has been approximately €10 million per year over the past four years.
Stamicarbon employs about 50 people in urea licensing, almost all of which are engineers and technical staff. Stamicarbon licenses patented technology and proprietary know-how to existing and prospective urea producers. Its non-urea licensing portfolio has been transferred to a new entity, Knowfort Technologies B.V., and is not part of the intended sale or the 2008 results of Stamicarbon.
Nico Gerardu , member of the Managing Board of Royal DSM, gave the following comment: “The intended sale of the urea-licensing business is an important step in DSM’s accelerated transformation towards a Life Sciences and Materials Sciences company. I am convinced that urea licensing has a much better strategic fit with Maire Tecnimont, a leader in project management and contracting. I would like to thank all Stamicarbon employees for their continued support and substantial contribution.”
Fabrizio Di Amato, Chairman and Chief Executive Officer of Maire Tecnimont S.p.A., stated: “This acquisition is a major step towards achieving the objectives set out by the Group’s strategic guidelines to grow our Engineering, Procurement and Construction services business in selected sectors of the process plant industry. Stamicarbon will operate as a member of the Maire Tecnimont Group, in particular alongside Tecnimont, and will continue to generate licensing revenues and margins as a standalone activity. Contemporaneously, we foresee that Stamicarbon will enlarge our technology portfolio and, working with Tecnimont, enhance our EPC business in the fertilizer sector through synergies in the commercial, technology and operation areas by improving process efficiency and competitiveness.”
Stamicarbon brings both excellent technical expertise and technology on which Maire Tecnimont intends to lever its high quality E&C business, primarily through synergies to be realized in combining technology and EPC contracting.
In September 2007 DSM announced that as a result of the accelerated strategic shift towards Life Sciences and Materials Sciences, a number of businesses which do not fit in with the strategy would be carved out and divested. Urea licensing is one of these businesses.
The divestment process for DSM Elastomers, DSM Agro and DSM Melamine is underway. As reported earlier, DSM has slowed down the process in view of the current financial and economic environment but still aims to complete the disposals within the timeframe of its Vision 2010 strategy.
The intended sale is dependent on regulatory and other customary approvals and notifications and will be submitted to the works councils according to the usual procedures in the Netherlands. One day before the closing, all employees in urea-licensing will be transferred to Stamicarbon B.V., the company to be acquired by Maire Tecnimont, in accordance with Dutch regulations.