RNS Number:1431I
Perstorp AB
29 March 2000


Acquisition strengthens Perstorp's leading position in specialty chemicals
segment

Perstorp  today signed an agreement regarding the acquisition of the 
Degussa-Huls group's  polyol operations, with production activities in
Bruchhausen,  Germany.   The  operations are a major manufacturer of Penta and
di-Penta, polyols that are used primarily in the production of coating systems.
The product range also includes calcium formate, which is used in the production
of high-performance cement systems and as an additive to animal feed in order to
reduce the amount of antibiotics required.  The acquired operations have annual
sales of slightly more  than  SEK 300 million, with some 160 employees.

The  acquisition, which will strengthen Perstorp Chemicals' positions in  regard
to Penta and di-Penta, is also expected to make a positive contribution to Group
earnings during the current year. It will also enable a significant increase in
the efficiency of Perstorp's  polyol  production  operations in  Europe  and 
will  thus  generate considerable synergistic benefits, the full effect of which
are expected to  be felt during the next two-year period.

"The  acquisition,  which  will strengthen our market positions for Penta and
di-Penta, is in line with our aim of further expansion in the polyol  market,"
says Jerker Hartwall, President of Perstorp Chemicals. "Calcium formate will be
a new and exciting addition to our range of performance chemicals, thus further
enhancing  this section of our operations."

The purchase price for the operations within Degussa-Huls amounts to
approximately DEM 100 million (approx. SEK 430 m). This corresponds to a price
that is seven times the company's estimated EBITDA for 200O, but a considerably
lower multiple after the full effect of the estimated synergies.  Profits
generated from the acquired operations will not be subject to tax, since the
Perstorp Group has unutilized tax loss carryforwards in Germany. The acquisition
is subject to approval by German competition authorities. The take-over is
scheduled to become effective on June 1.

Formed in 1999, Degussa-Huls AG is one of the world's largest specialty
chemicals companies, with 45,000 employees and annual sales corresponding to
slightly more than SEK 80 billion.

Perstorp Chemicals is part of the Perstorp Group and has annual sales of
slightly more than SEK 4.5 billion.  The division conducts manufacturing
operations in several European countries and in the US, South America and Asia.
Operations focus on high-value specialized chemicals products for industrial
customers and Perstorp has strong global positions in the market for polyols.
During 1999, the Perstorp Group had sales of slightly more than SEK 10 billion,
with some 6,000 employees and manufacturing operations in 15 countries.

For further information, please contact:

Rolf Rahmberg, Vice President Corporate Communications + 46 435 38l 59

Annette Lidman, Vice President Investor Relations      + 46 435 376 60


END

ACQKKCKBPBKDCNB
Akbank 5.000% A (LSE:16OG)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Akbank 5.000% A Charts.
Akbank 5.000% A (LSE:16OG)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Akbank 5.000% A Charts.