Lanxess (Leverkusen / Germany; www.lanxess.com) and DSM (Heerlen / The Netherlands; www.dsm.com) have agreed on the transfer of DSM Elastomers to the German chemical and plastics producer for EUR 310m. The deal, which will take effect following consultations with the Dutch company’s employees and regulatory approval, values the business at an EBITDA multiple of roughly six, based on the forecast for 2010. Lanxess will finance the acquisition out of existing liquidity. The former Bayer chemicals arm was rumoured in 2008 to be interested in acquiring the assets – see Plasteurope.com of 2.10.2008.

The sale of the elastomers business to Lanxess concludes the divestment scheme DSM began in 2008 when it revised its organisational structure and carved out commodities into a new Base Chemicals division in preparation for a sell-off. In September 2009, the company sold its EUR 50m “Sarlink” thermoplastic vulcanisates (TPVs) business to Teknor Apex (Pawtucket, Rhode Island / USA; www.teknorapex.com) – see Plasteurope.com of 23.09.2010.

DSM Elastomers, with 420 employees worldwide and projected sales of around EUR 380m for 2010, has capacity to produce 200,000 t/y of EPDM at a 160,000 t/y plant at its main site of Sittard-Geleen / The Netherlands and a 40,000 t/y plant at Triunfo / Brazil. Lanxess produces a total of 120,000 t/y of EPDM at Marl / Germany and Orange, Texas / USA. It plans to locate the headquarters of the combined elastomers business at Sittard-Geleen.

Lanxess said the takeover of the DSM business would give it access to the “ACE” advanced catalyst production process the Dutch company is currently implementing in The Netherlands. The technology is said to reduce energy and production costs while broadening application opportunities. Currently the main applications for EPDM are in the automotive sector, but also cable and wire, construction and oil additives.