PRESS RELEASE
Geman version
Monheim, July 14, 2008
Cognis sells its Pulcra Chemicals business to strategic investor
Specialty chemicals supplier Cognis has signed an agreement to sell its Pulcra Chemicals subsidiary to Germany based Fashion Chemicals GmbH & Co. KG for 26.3 million euros. The sale is in line with Cognis’ strategy of focusing on its core businesses driven by the wellness and sustainability trends. Agreements respecting the transfer of the business and related transactions were signed today in Düsseldorf, Germany.
Cognis will sell its Pulcra Chemicals subsidiary to Fashion Chemicals GmbH & Co. KG (“Fashion Chemicals”), an investor backed mainly by DSD Deri Sanayicileri Dis Ticaret A.S (“DSD”), based in Istanbul, Turkey, an organization with excellent connections within the leather goods industry. The stakeholders of DSD include leading tanneries and leather manufacturers.
The cash proceeds from the transaction will amount to 26.3 million euros. Approximately 9 percent of the cash proceeds will be financed by members of Pulcra Chemical’s senior management team. Fashion Chemicals additionally took over 15 million euros of financial liabilities (including debts and pensions). The final transaction is subject to usual closing conditions including regulatory approvals and is expected to be completed by the end of October 2008.
Pulcra Chemicals, which supplies process chemicals to the textile and leather industries, was previously the Process Chemicals strategic business unit (SBU) of Cognis. The SBU was carved out into separate legal entities on July 1, 2007, and renamed Pulcra Chemicals. Pulcra operates production sites and service centers in Brazil, China, Germany, India, Indonesia, Italy, Mexico, Spain, Turkey and the USA. In 2007, Pulcra Chemicals reported external sales of 246 million euros.
Antonio Trius, CEO of Cognis, comments: “We are sure that Fashion Chemicals supported by DSD with its deep understanding of market requirements is an excellent fit and will help Pulcra Chemicals to develop its business successfully as well as safeguard its long-term competitiveness. This transaction will enable Cognis to consistently focus on its innovation-driven growth markets of wellness and sustainability.”
“We are delighted to gain an investor to support us on building up our core business,” says Yusuf Aktalay, CEO of Pulcra Chemicals and CEO-designate of Fashion Chemicals GmbH & Co KG. “With over 125 years of experience, we have an in-depth knowledge of both the regulatory environment in our key markets and also the prevailing trends relating to health and safety, ecological sustainability and wear comfort. We are therefore well placed for operational success as we move forward.”
About Cognis
Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients, with a particular focus on the areas of wellness and sustainability. The company employs about 7,600 people, and it operates production sites and service centers in around 30 countries. Cognis has dedicated its activities to a high level of sustainability and delivers natural source raw materials and ingredients for food, nutrition and healthcare markets, and the cosmetics, detergents and cleaners industries. Another main focus is on products for a number of other industries, such as coatings and inks, lubricants, as well as agriculture and mining. Cognis holds a 50-percent stake in the joint venture Cognis Oleochemicals, one of the world’s leading manufacturers of oleochemicals.
Cognis is owned by private equity funds advised by Permira, GS Capital Partners, and SV Life Sciences. In 2007, Cognis recorded sales of about 3.52 billion euros and an Adjusted EBITDA (operating result) of 410 million euros.
Contact Cognis
Susanne Marell, Vice President Corporate Communications
Cognis GmbH
Phone: +49-2173-4995-222
Email: susanne.marell@cognis.com
Viola Stahl, Communications Manager
Cognis GmbH
Phone: +49-2173-4995-221
Email: viola.stahl@cognis.com