RAISIO CHEMICALS TO BE SOLD TO CIBA SPEC
Raisio Group plc Stock Exchange Release
19 March 2004 at 7.30 Finnish time
RAISIO CHEMICALS TO BE SOLD TO CIBA SPECIALTY CHEMICALS
Raisio Group to become a specialist in well-being
After intensive negotiations with several potential buyers Raisio Group
has signed a deal to sell its subsidiary Raisio Chemicals to Ciba
Specialty Chemicals. Ciba Specialty Chemicals (SWX: CIBN, NYSE: CSB) is
an international, Swiss based specialty chemicals company operating in
more than 120 countries. In 2003 Ciba Specialty Chemicals generated a
turnover of around CHF 6.6 billion (EUR 4.3 billion). More information
on Ciba Specialty Chemicals can be found at www.cibasc.com.
The enterprise value offered is EUR 475 million consisting of cash and
assumed debt. This will lead to an estimated sales profit before taxes
at around EUR 200 million. The divestment of Raisio Chemicals will
strengthen the equity ratio of Raisio Group to around 80 per cent
assuming repayment of interest-bearing debt. Out of the EUR 861 million
turnover of Raisio Group, Raisio Chemicals made EUR 422 million in 2003.
Finalizing the deal is subject to the approval of merger control
authorities. The final closing date depends on the length of the
regulatory review, but is currently expected in the second or the third
quarter of 2004.
Mr Rabbe Klemets, CEO of Raisio Group commented: "Our main target for
the divestment of Raisio Chemicals was to find a good home for it with
the best possible financial outcome for Raisio Group and its
shareholders. This announced deal with Ciba fulfils our objectives and
we are pleased with the successfully completed negotiations. We highly
appreciate the industrial buyer Cibas strong commitment to further
develop Raisio Chemicals as a key part of the Finnish forest cluster.
This divestment significantly increases our financial flexibility and
makes Raisio Group a virtually debt-free company. It enables Raisio
Group to strongly focus on food and feed, functional food ingredients
and food diagnostics businesses. By investing in these core competence
areas Raisio Group will further develop as a specialist in well-being.
The strategy work is proceeding according to plan and we expect to
complete the strategy process by the summer."
Mr Armin Meyer, Chairman and CEO of Ciba Specialty Chemicals commented:
"The planned acquisition of Raisio Chemicals is a first-class strategic
fit and a complementary expansion of our business. This move will create
a top tier player in the paper chemicals supply field, with a broader
line of products and also a much wider geographic reach. By combining
our strong R&D operations, near key European customers, we will be
better positioned to meet their future needs. We look forward to
welcoming Raisio Chemicals into Ciba Specialty Chemicals"
RAISIO GROUP PLC
Taru Narvanmaa
Executive Vice President, Communications and Investor Relations
tel. +358 2 443 2240, +358 50 590 9398
Further information:
CEO Rabbe Klemets
tel. + 358 2 443 2220
Press and analyst conference will be arranged in Helsinki on 19 March
2004 at 10.l5 a.m. (Finnish time) at Papa Giovannis Showroom,
Keskuskatu 7, 2nd floor.
Telephone Conference will be held on 19 March 2004 at 3 p.m. (Finnish
time). Please call +358 800 148766.
For further information at Ciba Specialty Chemicals please contact:
Media: Tel. +41 61 636 4444 Fax +41 61 636 3019
Investor Relations: Tel. +41 61 636 5081 Fax +41 61 636 5111
Ciba Specialty Chemicals will arrange a press conference in Zurich on 19
March 2004 at 2.30 p.m. CET: Airport Zürich, Unique Conference Center,
Room 817 - The Wright Brothers
Photos related to the release:
http://raisio.hansabase.com/press/raisio/photos_raisio_chemicals
_release.html
