BASF acquires Zeneca's Textile Colours Business.WILMINGTON, Del.--(BUSINESS WIRE)--May 8, 1996--Zeneca today announced that it had signed an agreement whereby BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida will acquire Zeneca's Textile Colours Business for up to 138 million pounds cash. In addition, Zeneca will retain net working capital valued at 11.9 million pounds which will be collected by BASF on Zeneca's behalf. The exact amount of consideration will depend upon, amongst other things, a stock count at completion. The business will be integrated into the Textile and Leather Dyes and Chemicals Operating Division of BASF, enabling it to strengthen its product portfolio and international activities in this sector. The acquisition, which requires the approval of the appropriate regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , will improve BASF's position in the highly competitive international textile dyes market. "In the context of the strategic re-orientation of our textile dyes business, merging the activities of BASF and Zeneca signifies an important step forward," explains Dr. Albrecht Muller Mul·ler , Hermann Joseph 1890-1967. American geneticist. He won a 1946 Nobel Prize for the study of the hereditary effect of x-rays on genes. Mül·ler , Johannes Peter 1801-1858. , head of the BASF Operating Division - Textile and Leather Dyes and Chemicals. BASF has made comprehensive arrangements to ensure that the activities of the two companies are combined as quickly and as smoothly as possible. "Both during and after the integration process our present customers and our new ones will be guaranteed the same high quality products and services as before," assures Dr. Muller. The acquisition will strengthen the company's product lines and move it into third place among the world's textile dye producers. Integrating Zeneca's products will considerably expand BASF's business in dyes for cellulosic fibres and greatly improve its position in other dye sectors. In the production, marketing and sales of textile dyes, integration of the new business will produce synergies along the entire value-added chain, resulting in improved earnings potential. Zeneca Textile Colours achieved worldwide sales in 1995, of 202 million pounds and will transfer net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of approximately 65 million pounds to BASF. This includes sites at Ellesmere Port Ellesmere Port, town and district (1991 pop. 78,800), Cheshire, W central England. Ellesmere Port, located on the Manchester Ship Canal near its junction with the Shropshire Union Canal and the entrance into the Mersey estuary, is the principal town of the district. , UK and Jacarei, Brazil, and a warehouse, mixing and re-packing plant in Charlotte, N.C. Approximately 730 Zeneca employees directly involved in Textiles Colours worldwide will transfer with the business. Employees at Zeneca's shared manufacturing sites at Huddersfield, West Yorkshire West Yorkshire, former metropolitan county, N central England. Created in the 1974 local government reorganization, the county largely embraced the Leeds conurbation and comprised five metropolitan districts: Calderdale, Bradford, Leeds, Wakefield, and Kirklees. and Grangemouth, Scotland, will remain with Zeneca to service manufacturing contracts for continued production of textile dyes and intermediates for BASF. Zeneca Textile Colours and its employees have an excellent reputation in the textile industry. Key product ranges hold leading market positions in the colouration Noun 1. colouration - the timbre of a musical sound; "the recording fails to capture the true color of the original music" coloration, color, colour of fashion textiles and household fabrics. Michael O'Brien Michael or Mike O'Brien may refer to:
NOTE TO EDITORS: Zeneca Group PLC (NYSE NYSE See: New York Stock Exchange :ZEN), is a major $7.6 billion international bioscience business engaged in the research, development, manufacture and marketing of ethical (prescription) pharmaceuticals, agricultural and specialty products and the supply of healthcare services. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Zeneca Inc. is a $2.8 billion bioscience business with approximately 6,000 employees at 53 locations in 24 states. Zeneca's U.S. headquarters is in Wilmington, Del. BASF's Operating Division Textile and Leather Dyes and Chemicals, recorded sales in 1995, exceeding DM 2 billion. It employs around 4,000 staff, 2,000 of whom are based at the parent company in Ludwigshafen. The Operating Division's dye sales in 1995 were approximately DM 850 million. In addition to its Ludwigshafen site, the company has dye production sites in Brazil, U.S.A. and India, and two joint ventures in China and Japan. Key earners in BASF's textile dyes business are disperse disperse /dis·perse/ (dis-pers´) to scatter the component parts, as of a tumor or the fine particles in a colloid system; also, the particles so dispersed. dis·perse v. 1. , vat and reactive dyes and Indigo. CONTACT: Zeneca Inc. Judith Auchard, 302/886-3638 |
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