Roche vitamins deal
This article was originally published in The Tan Sheet
Executive Summary
DSM acquires Roche's vitamins, carotenoids and fine chemicals business for roughly $2.09 bil. (€1=$1.07), firms say Feb. 10. The original $2.24 bil. price tag agreed upon in September was lowered due to the "continued slow-down of the world's economies and the weakening" of the U.S. dollar versus the Swiss Franc, "which both had a negative impact on the vitamin business performance compared to earlier forecasts," firms say (1"The Tan Sheet" Sept. 9, 2002, p. 6). DSM will pay Roche roughly $1.99 bil. in cash and $107.4 mil. in DSM stock. Roche will take an impairment charge of $1.2 bil. in its 2002 results and will increase its provisions for liabilities relating to vitamin price-fixing charges. The transaction is slated to close in Spring pending approval by antitrust authorities...