RAG's Subsidiary Degussa Sells Industrial Chemicals Business
Dec 19, 2006
Degussa AG, Dusseldorf, the world's leading specialty chemicals company, is parting from its industrial chemicals business via a management buyout. Through the buyout the Managing Director of Mannheim-based Goldschmidt TIB GmbH, Dr. Karsten Tiemann, takes over the activities in Germany and Mexico. The US business is to be sold separately. Silence has been agreed on details of the management buyout. The transaction - which is still subject to the approval of the relevant boards - should be completed before the end of this year.
Dr. Klaus Engel, Management Board Chairman of Degussa AG and Member of the Management Board of RAG Aktiengesellschaft: "With this transaction we have found a very good solution for all parties. We are parting with a non-core business activity in line with our approach of consistently optimizing our portfolio. At the same time we are providing the industrial chemicals business and its employees very promising perspectives for the future within a new owner structure."
In 2005 the approx. 330 employees of the industrial chemicals business in Germany and Mexico generated sales of more than 85 million euros. The Group is a leading manufacturer of industrial chemicals with business activities in basic chemicals (acids, sulphur and zinc chemicals), anorganic specialty chemicals (electroplating and copper chemicals, tin specialties) and coating systems (corrosion protection, bitumen specialties).
Degussa-a wholly owned subsidiary of the RAG Group-is the global market leader in specialty chemicals. Our business is creating essentials-innovative products and system solutions that make indispensable contributions to our customers' success. In fiscal 2005 around 44,000 employees worldwide generated sales of 11.8 billion euros and operating profits (EBIT) of 940 million euros.
