DSM Acquires Catalytica Pharmaceuticals.Business Editors HEERLEN, The Netherlands--(BUSINESS WIRE)--Aug. 3, 2000 Strengthening of Position as Global Market Leader in Fine Chemicals for Life Sciences Industry DSM 1. DSM - Data Structure Manager. An object-oriented language by J.E. Rumbaugh and M.E. Loomis of GE, similar to C++. It is used in implementation of CAD/CAE software. DSM is written in DSM and C and produces C as output. today reached agreement with Catalytica, Inc. (Mountain View, CA, USA) concerning the acquisition of Catalytica Inc., more specifically its pharmaceutical subsidiaries. Through this acquisition DSM will greatly reinforce its current position as the global market leader in fine chemicals for the life sciences industry. The acquisition values Catalytica Pharmaceuticals at USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 800 million (approx. EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 860 million) debt free. As a result of this acquisition, DSM's sales in life science products will increase by EUR 450 million to EUR 2.2 billion and will represent 31% of overall sales (all figures based on 1999). The share of the pharmaceutical sector in DSM's sales will increase from 15% to 20%, making this sector DSM's biggest end-use market by far. DSM will acquire Catalytica's pharmaceutical outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. business through the purchase of Catalytica Inc. Concurrent with this transaction, Catalytica Inc. will combine its Catalytica Combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion. Systems and Catalytica Advanced Technologies businesses into a single entity and distribute the shares of this new entity to Catalytica shareholders. This distribution is taxable to Catalytica Inc. For further details we refer to Catalytica Inc. The transaction is subject to the approval of Catalytica's shareholders as well as clearance under U.S. antitrust law antitrust law Any law restricting business practices that are considered unfair or monopolistic. Among U.S. laws, the best known is the Sherman Antitrust Act of 1890, which declared illegal “every contract, combination…or conspiracy in restraint of trade or . The biggest shareholder and certain affiliates of the company together owning 32% of the voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. have pledged their full support for the transaction. It is expected that the transaction will be completed around the end of this year. For DSM, the acquisition of Catalytica Pharmaceuticals is a major strategic move. Peter Elverding, chairman of the DSM Managing Board, is pleased with the transaction: 'We want to realize accelerated growth in life science products, especially in the important pharma market, and at the same time increase our presence in the USA. We are achieving both these goals by acquiring Catalytica Pharmaceuticals. I can't think of any better partner for DSM: in terms of technology, geographic markets as well as customer base, Catalytica Pharmaceuticals' activities complement ours perfectly. This acquisition will enable DSM to upgrade and expand its services for the pharmaceutical industry.' Ricardo Levy, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Catalytica, Inc.: 'The combined company will have the critical mass and capabilities to streamline all of the operations in the pharmaceutical production cycle and provide excellent added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
On learning of the transaction, Bob Ingram, Chief Executive of Glaxo Wellcome said: 'This transaction brings together two very reputable rep·u·ta·ble adj. Having a good reputation; honorable. rep  u·ta·bil players in the outsourcing market and provides a combination of capabilities that will serve well the pharmaceutical industry and customers like Glaxo Wellcome.' Catalytica Pharmaceuticals (with 1,600 employees) will operate under the name DSM Catalytica Pharmaceuticals and will form a business unit of the DSM Fine Chemicals business group. DSM is the world market leader in fine chemicals for the pharmaceutical industry. Catalytica Pharmaceuticals will expand DSM's competences and position further in active pharmaceutical ingredients, and dosage dosage /dos·age/ (do´saj) the determination and regulation of the size, frequency, and number of doses. dos·age n. 1. Administration of a therapeutic agent in prescribed amounts. formulation, especially in steriles. At the same time DSM's presence in the USA market will be substantially broadened. The combination will offer a unique set of development and manufacturing capabilities to its global pharmaceutical customers.' In the transaction DSM was advised by Chase Manhattan. Catalytica, Inc. Catalytica, Inc. operates through its subsidiaries, Catalytica Pharmaceuticals, Catalytica Combustion Systems, and Catalytica Advanced Technologies. They operate as distinct entities with their own board of directors that offer unique expertise related to the subsidiaries' respective industries. Catalytica Pharmaceuticals has established itself as a world leader in the pharmaceutical manufacturing outsourcing market. Catalytica Pharmaceuticals began operations to optimize optimize - optimisation the manufacture of chemical entities through the use of catalysis catalysis Modification (usually acceleration) of a chemical reaction rate by addition of a catalyst, which combines with the reactants but is ultimately regenerated so that its amount remains unchanged and the chemical equilibrium of the conditions of the reaction is not . Following successful endeavors in this area, Catalytica recognized the growing opportunities as a manufacturing partner to the pharmaceutical industry and expanded its scope significantly. In 1999 Catalytica Pharmaceuticals realized total sales of USD 421 million. DSM DSM is a highly integrated international group of companies headquartered in Heerlen (Netherlands) that is active worldwide in the field of life science products, performance materials and chemicals. The group has annual sales of EUR 6.3 billion and employs about 21,800 people at more than 200 sites worldwide. For detailed company profiles and pictures of DSM and Catalytica, Inc.: www.dsm.nl www.catalytica-inc.com |
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