DSM to sell Sarlink unit to Teknor Apex
Heerlen, NL, Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, today announces that it has reached an agreement regarding the sale of the business unit Thermoplastic Elastomers (Sarlink®), part of the business group DSM Elastomers, to Teknor Apex Company (Teknor Apex). The intended sale is expected to close in Q4 2010, subject to regulatory and other customary approvals and notifications.
The intended sale of the business unit is a result of DSM’s ambitions to focus on Life Sciences and Materials Sciences. As announced in September 2007, DSM Elastomers (Sarlink® and Keltan®) does not fit with this focus.
Both parties have agreed not to disclose financial details at this time. DSM expects to report a small book profit as a result of the transaction upon closing. Approximately 90 employees will transfer to the new owner upon closing.
Sarlink® has compounding operations in Leominster (Massachusetts, United States) and Genk (Belgium). While the business unit will operate as an integral part of Teknor Apex, it will continue to sell its TPVs (thermoplastic vulcanizate) under the Sarlink® name. In 2009 Sarlink® realized net sales of over EUR 50 million.
Nico Gerardu, Member of the DSM Managing Board and responsible for the Base Chemicals and Materials cluster, commented: “The sale of Sarlink® is another important step for DSM in its ongoing transformation towards a Life Sciences and Materials Sciences company. As there is a natural fit with Teknor Apex, we see a bright future ahead for Sarlink® under new ownership. I would like to thank all Sarlink®employees for their ongoing support and substantial contribution to DSM.”
Bertram M. Lederer, executive vice president of Teknor Apex said: “Teknor Apex is a good home for the Sarlink® group, and the enhanced potential from our combined people and resources will benefit customers. The addition of the Sarlink® TPV business strengthens the position of Teknor Apex as the world’s most diversified independent compounder of TPEs and expands our portfolio at the high-performance end, particularly for automotive applications.”
Sarlink® is one of the two business units of the business group DSM Elastomers. The selling process for Keltan® (EPDM), the other business unit of DSM Elastomers, as well as most of the remaining other businesses in Base Chemicals and Materials is ongoing.
Teknor Apex Company
A privately held firm founded in 1924. Teknor Apex Company is an international polymer technology company and one of the world’s leading custom compounders of plastics. For U.S. markets, the company also manufactures chemicals such as plasticizers and the nationally branded consumer product, Apex® garden hose. Teknor Apex is headquartered in Pawtucket, RI, U.S.A., operates manufacturing facilities around the world, and sells in 90 countries. Six of the eight Teknor Apex business units focus on plastics compounding, including bioplastics; color concentrates; nylon, PET, and other engineering thermoplastics; thermoplastic elastomers; toll and specialty compounds; and vinyl. The company’s operations in the U.S. serve customers throughout the Americas. Subsidiaries in China, Singapore, and the United Kingdom serve customers in Asia, Africa, the Mideast, and Europe. Visit www.teknorapex.com.
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