UCB : Sale of Methylamines & Derivatives Activities

| Source: UCB UCB

UCB has signed a definitive agreement to sell its Methylamines & Derivatives business to a company formed by Morgan Stanley Capital Partners, the main fund of the private equity business of Morgan Stanley, in partnership with Sorgenti Investment Partners, a Philadelphia (USA) based investment group specialized in the chemical industry. The transaction size is of the order of € 120 million. This sale is subject to the approval of the anti-trust authorities in some countries, among other conditions customary for a transaction of this nature. Closing of the transaction is expected to take place on October 31st, 2002.
Under the terms of the agreement, the buyers will take over the production units of Methylamines & Derivatives of UCB in Belgium (Ghent/Wondelgem), Germany (Leuna) and China (Fengxian), as well as the related commercial organization throughout the world.
Faithful to its strategic will to continue to develop specialty chemicals, in which it may claim a world leadership, the UCB Group had expressed its wish to find a way to disinvest in the field of Methylamines & Derivatives. On their side, the buyers have confirmed to UCB that they will further develop the business with the active participation of the personnel and management team already in place.
The production sites and the commercial organization which constitute the Methylamines & Derivatives activities employ around 520 people and generated a turnover of € 187 million in 2001.
The specialities of UCB's Chemical Sector employ about 1,200 people and should reach a turnover of € 500 million at the end of 2002. This figure is essentially due to Radcure resins curable by UV/EBC beam and Crylcoat polyester resins for solvent free powder paints, as well as resins used mainly in pressure-sensitive adhesives.