Arnhem, the Netherlands, April 2, 2007 — Akzo Nobel has agreed to sell its European- based Methylamines and Choline Chloride (MACC) businesses to Balchem Corporation (NASDAQ: BCPC), New York (U.S.), a deal which completes the company’s Chemicals divestment program.
Balchem Corporation’s European subsidiary, Balchem, B.V., has entered into an agreement under which it will acquire the businesses—located in Marano Ticino, Italy—from Akzo Nobel Chemicals S.p.A. Financial details were not disclosed.
“We are confident that this transaction will be a positive step both for the business and its employees,” explained Leif Darner, Akzo Nobel’s Board member responsible for Chemicals. “This deal means that we have now completed the divestment program that we started in 2005 following the company’s strategic realignment of its Chemicals portfolio.”
Dino A. Rossi, President, CEO and Chairman of the Board of Directors of Balchem: “This acquisition is very strategic for Balchem in many respects. It should provide many opportunities for Balchem’s global growth plans, and it also adds a direct European presence, which we have not had previously.”
the terms of the deal, the company’s operations in Marano Ticino and approximately 80 employees will be transferred to the new owner. Unions and employee representative bodies have been informed and consultation procedures will commence shortly, where applicable. Regulatory approvals will be sought as and where appropriate.
Nobel MACC is one of the leading producers worldwide for choline chloride and a medium size producer for methylamines. Choline chloride is an essential nutrient for optimum animal growth. Methylamines are used as raw materials for the production of choline chloride and are also widely used in many chemical and industrial applications.
Corporation consists primarily of three business segments: ARC Specialty Products, Encapsulated/Nutritional Products, and BCP Ingredients. BCP Ingredients manufactures and supplies choline chloride and derivatives used primarily in the poultry and swine industries.