DSM Acquiring Roche Vitamins 31940

DSM Acquiring Roche Vitamins

BASEL, Switzerland, & HEERLEN, The Netherlands--Sixmonths after putting its vitamin division on the block, Roche announced the saleof 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 andcarotenoids (annual sales of $2.37 billion in 2001), without the liabilityassociated with the '90s price fixing case. Under terms of the agreement, whichmust be approved by European antitrust authorities, Roche will retain allliabilities associated with its role in an international vitamin-price-fixingscheme.

In a joint release, both companies' chairmen noted the salebetter positions each company to focus on its preferred business. Roche willfocus on the pharmaceutical and diagnostic areas, while DSM aims to grow itssales in life sciences and performance materials.

DSM recently divested its petrochemical activities, and it wasreported by a German newspaper in late May that DSM would acquire the Rochevitamin 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 toRoche's U.S. vitamin office in Parsippany, N.J., during the transition, Roche'svitamins group "will continue to serve its customers and maintain otherbusiness relationships as usual, with the highest level of service." Headded that there are no planned changes in management, personnel, or operationsas a result of the divestiture announcement.