CSM Discussing Takeover of Glucona's Activities 40805

CSM Discussing Takeover of Glucona's Activities

DIEMEN, The Netherlands--CSM nv, based here, is holdingdiscussions with Vandeem, Netherlands-based AVEBE to take over the gluconic acidderivatives activities of AVEBE's subsidiary, Glucona. According to CSM, Glucona--withproduction facilities in Ter Apelkanaal, the Netherlands, and Janesville,Wis.--has an annual turnover of approximately 30 million euros (US$28.3million).

CSM (www.csm.nl) reported that this potentialacquisition would be an important addition to its CSM Biochemicals Division,operating under the name PURAC (www.purac.com).PURAC currently produces lactic acid and lactic acid derivatives in TheNetherlands, Spain, Brazil and the United States.

CSM reported in its release that it and AVEBE expect the negotiations to takeseveral months. A CSM spokesperson told INSIDER that this business movewould make PURAC the largest player in the higher gluconic acid derivativesmarket.

Calls to the Princeton, N.J., AVEBE sales office were not returned by presstime.