media release

Akzo Nobel strengthens its Pharma Group

Agreement reached with Bayer Animal Health for purchase of North American Biologicals Products Business.

Agreement reached with Bayer Animal Health for purchase of North American Biologicals Products Business.

Arnhem, the Netherlands, June 14, 2000 – Intervet, the veterinary business unit of Akzo Nobel, moved to the number three position worldwide, after Akzo Nobel agreed to buy the Bayer Animal Health Division’s Biologicals Products Business in the United States and Canada. Together with the acquisition last year of Hoechst Roussel Vet, this acquisition completes Intervet’s product range in biologicals in the USA, the world’s biggest market in animal healthcare. Parties expect that the deal will be closed on July 31, 2000 subject to regulatory approval.“Last year, Intervet established itself as a leading global player in the animal healthcare market with the acquisition of the Hoechst Roussel Vet business”, said Paul Brons, Member of the Board of Management responsible for Akzo Nobel’s Healthcare business. “This acquisition is a unique, one-time opportunity to further complement our position in the USA in animal healthcare and will firmly establish Intervet in its number three position worldwide. “

“Intervet has achieved an industry leading position in the US poultry biologicals market and has built a solid base for its swine and companion animal businesses in recent years”, said Toon Wilderbeek, General Manager of Intervet. “With the addition of Bayer’s equine and cattle lines, both among the top three in their market, the company is well positioned to establish a US biologicals business on a scale equal to those of the current industry leaders. This is now possible thanks to the combination of the commercial mass provided through the Hoechst Roussel Vet and Bayer acquisitions and Intervet’s strengths in research technology. ”

The acquisition includes the production facility in Worthington, MN and the corporate research facility in De Soto, KS. Intervet plans to retain the employees currently at the biologicals sites both at Worthington, Shawnee and De Soto. In the case of Bayer’s Shawnee facility, Intervet has contracted with Bayer to lease the current biologicals facilities.

Klaus Olbers, President of Intervet Inc., USA, stated “Intervet has a clear commitment to become a leading supplier for the US animal health market. With the recent acquisitions of Hoechst Roussel Vet, Bio-Trends International (BTI) and Bayer's biological business, we now have a solid pharmaceutical base, a leading position in all livestock vaccine segments and the commercial mass needed to establish a significant presence in the companion animal markets.“

Intervet, headquartered in Boxmeer, the Netherlands, is focused on the research and development, manufacturing and marketing of veterinary products and is an active player in the worldwide animal health market. Products include vaccines for the prevention of infectious diseases; antibiotics, antiparasitics, feed additives and other pharmaceuticals. All of these products are intended for use in a variety of animal species including poultry, pigs, cattle, sheep and goats, horses, fish and pets.

Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, and chemicals. Consolidated sales for 1999 (excluding Acordis) totaled some EUR 12 billion (USD 13 billion, GBP 8 billion). At the beginning of 2000, the Company employed 68,000 people in 75 countries. Financial results for the second quarter of 2000 will be announced on July 26, 2000.