Kemira further increases its focus on water intensive industries by selling its stake in Sachtleben to Rockwood
Stock exchange release
February 14, 2013 at 14 pm (CET+1)
Kemira Oyj and Rockwood Holdings Inc. have today signed an agreement, according
to which Rockwood buys Kemira's share (39%) of the titanium dioxide joint
venture Sachtleben GmbH. The transaction price of the deal is EUR 97.5 million
and will impact Kemira's cash flow positively in the first quarter of 2013.
Kemira will undertake a non-recurring write-down related to the transaction of
approximately EUR 25 million, impacting Kemira's reported EBIT in the first
quarter of 2013.
The joint venture Sachtleben GmbH, which was established in September 2008 by
combining Kemira Oyj'sÂ and Rockwood Holdings Inc's TiO2 businesses, is a
leading producer of specialty TiO2 pigments for the synthetic fiber, packaging
inks, cosmetics, pharmaceutical and food industries.
- Ever since establishing the joint venture in September 2008, we have clearly
communicated that this is a non-core asset for Kemira. I am happy that we are
now able to finalize the exit of the business in a manner that is a good fit for
both parties of the joint venture. This divestment is again another milestone in
implementing our water strategy and it frees up resources both in terms of
management capacity and financing capabilities to fully focus on both, growth as
well as Â the delivery of the announced "Fit for Growth" restructuring measures,
said Wolfgang BÃ¼chele, Kemira's President and CEO.
For more information, please contact
Matti Lapinleimu, VP, M&A
Tel. +358 10 862 1786
Tero Huovinen, Director, Investor Relations
Tel. +358 10 862 1980
Rockwood Holdings Inc.
Nahla A. Azmy, Vice President, Investor Relations and Communications
Tel. +1 609 524 1109
Kemira is a global over two billion euro water chemistry company that is focused
on serving customers in water-intensive industries. The company offers water
quality and quantity management that improves customers' energy, water, and raw
material efficiency. Kemira's vision is to be a leading water chemistry company.
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Source: Kemira Oyj via Thomson Reuters ONE