Degussa sells its Water Chemicals business
March 30, 2006 - Degussa AG, Dusseldorf, is selling its Water Chemicals business to Ashland Inc. The purchase price including net debt to be assumed is 120 million euros. The transaction, which is still subject to the customary approvals, in particular clearance from the regulatory authorities and by the Degussa Supervisory Board, should be concluded towards the end of May 2006.
Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht states: "Our Water Chemicals business is an ideal strategic complement to Ashland's portfolio. We have passed our business into good hands."
In view of the sustained consolidation process underway in the water chemicals industry, the Degussa Management Board decided to sell the Water Chemicals business so that it has the opportunity to continue to develop into a leading global position.
"Water management is an essential and growing part of the world economy, and the addition of the Degussa water treatment business to Ashland will help us participate in that growth", said James J. O'Brien, chairman and chief executive officer of Ashland.
Degussa's water chemicals activities comprise specialty chemicals primarily for use in separating liquids and solids when treating municipal and industrial waste water, in the paper, mining and petroleum industry, and for anti-scaling treatment in water-transporting systems. In fiscal 2005, more than 500 employees generated total sales of approximately 200 million euros.
Degussa 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.
Ashland Inc. (NYSE: ASH) is a Fortune 500 chemical and transportation construction company providing products, services and customer solutions throughout the world. To learn more about Ashland, visit www.ashland.com.
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