Specialty chemicals maker Degussa GmbH of Dusseldorf, Germany, announced it will sell its antioxidant activities to a subsidiary of the Starnberg holding company Arques Industries AG for an undisclosed amount.
Antioxidants are used to prevent reaction with atmospheric oxygen. Degussas antioxidants business comprises products for lubricants, plastics, foods and paints as well as beauty care and wellness. In particular, Ionol, Ionox and Ralox antioxidants may be used in manufacturing of high performance lubricants and industrial oils. In fiscal 2005, the antioxidants business140 employees generated sales of about 60 million (U.S. $77.6 million). Degussa is a subsidiary of the RAG Group.
The transaction includes sale of the companys Spanish head office in Barcelona (Degussa Sant Ceoni S.A.) and the antioxidants business of the British company Degussa Knottingley Ltd., headquartered in Knottingley. Pending approvals, Degussa and Arques expect to finalize the transaction during the first quarter of this year.
RAG spokesman Reinhard Scheiler told Lube Report the antioxidants business included two parts. One was the Laporte business (Knottingley) which we bought in 2001, he said. The other one was the Raschig business acquired in 2002.
Klaus Engel, chairman of the management board of Degussa GmbH and a member of the management board of RAG Aktiengesellschaft, said, With this transaction, we are, in the context of our systematic portfolio optimization, divesting ourselves of an activity that is not part of our core business. We will continue to focus on highly profitable specialty chemicals.
Ruediger Jelitte, vice president of business development and services for Degussa subsidiary RohMax, told Lube Report it was important to clarify that while the antioxidants business did some work in the lubricants industry, RohMax is not involved in the divestment.
For us it is very important to emphasize that the divestment of the antioxidants business does not have any effect on RohMax, and the fact that RohMax is a core business to Degussa, Jelitte said. This is often times misunderstood, and its important for us, so far as customers are calling in during a pending situation of divestment, we still are a reliable supplier.