DSM Acquiring Roche Vitamins

BASEL, Switzerland, & HEERLEN, The Netherlands--Six months after putting its vitamin division on the block, Roche announced the sale of its Vitamin & Fine Chemicals Division to DSM N.V. For 2.25 billion Euro ($2.23 billion), DSM acquires the world's largest supplier of vitamins and carotenoids (annual sales of $2.37 billion in 2001), without the liability associated with the '90s price fixing case. Under terms of the agreement, which must be approved by European antitrust authorities, Roche will retain all present and future liabilities associated with its role in an international vitamin-price-fixing scheme.

In a joint release, both companies' chairmen noted the sale better positions each company to focus on its preferred business. Roche will focus on the pharmaceutical and diagnostic areas, while DSM aims to grow its sales in life sciences and performance materials to 10 billion Euro by 2005. "The combination of DSM's life science products and Roche's vitamins and fine chemicals business will be the world's leading supplier to the life sciences industry," said Peter Elverding, DSM's managing board chairman.

DSM recently divested its petrochemical activities, and it was reported by a German newspaper in late May that DSM would acquire the Roche vitamin division. DSM's 2001 annual sales topped 8 billion Euro ($7.8 billion), and it employs 20,000 people worldwide. Roche's vitamin division (www.roche-vitamins.com) is headquartered in Kaiseraugst, Switzerland, employing 7,500 people worldwide.

According to Ron Gurczynski, a communications consultant to Roche's U.S. vitamin office in Parsippany, N.J., during the transition, Roche's vitamins group "will continue to serve its customers and maintain other business relationships as usual, with the highest level of service." He added that there are no planned changes in management, personnel, or operations as a result of the divestiture announcement.