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ROCKWOOD SPECIALTIES Group Inc. will acquire four businesses of Dynamit Nobel AG for euro2.25 billion ($2.67 billion), creating a new specialty chemicals group with combined sales of $2.5 billion. Majority owned by Kohlberg Kravis Roberts and Company LP (KKR), Rock wood will add several new platforms to its diversified product mix.
Rockwood is buying the Sachtleben Chemie, Chemetall, CeramTec and DNES Custom Synthesis divisions of Dynamit Nobel, the chemicals arm of MG Technologies AG. MG Tech put all of Dynamit Nobel on the block in October 2003. The remaining plastics business will be sold separately and is being courted by several bidders. The businesses to be acquired had sales of around $1.6 billion in 2003.
It appears that, when all is said and done, MG Tech will receive significantly more than it initially estimated for its chemicals operations. The company estimated it would bring in over euro2 billion in proceeds from the disposals in October, including the divestment of its distribution unit Solvadis, which has...