Ciba buys Raisio Chemicals.
CIBA BUYS RAISIO CHEMICALS. Ciba Specialty Chemicals, Basel, Switzerland, announced an agreement to purchase Raisio Chemicals-Finland, from Raisio Group, Raisio, Finland, for EUR 475 million (US$ 575 million). Raisio Chemicals sales for 2003 were EUR 422 million (US$ 511 million). It has 1100 employees of which one-third are in Finland. The agreement should close late in 2004. Following regulatory approval, Finland will be a stronger regional hub. Ciba Specialty Chemicals' Paper business will combine its product development, application technology, and technical customer service operations in Finland. The purchase agreement calls for Ciba Specialty Chemicals to pay a total of Euro 475 million (CHF 736 million) for Raisio Chemicals in cash and assumed debt. The acquisition should be earnings enhancing in year two and contribute to the sales and margin growth targets of the segment and the group.