DSM has agreed to sell its distribution subsidiary Euroresins to Cathay Investments for an undisclosed sum. The deal, still subject to regulatory approval, is expected to close before the end of the first quarter.

The Dutch-based life science and material science group said the sale is in line with its realignment strategy, announced in November, which foresees divestment of businesses in composite resins, along with caprolactam and acrylonitrile. Earlier, it was rumored to be in advanced talks with Ineos about a deal for the latter portfolio.

DSM is under pressure from US activist investor Third Point - the hedge fund that is also pressuring Dow Chemical and other US companies - to break up and focus on the more profitable nutrition business.

With sales of around €90 million and 70 employees, Euroresins is a distributor of products to the composite resins industry in nine European countries, including the UK, Italy and France. All employees will transfer to the new owner.

Cathay Investments is a UK holding company for a group of chemical distributors and traders. Its principal trading business is Cathay Composites, which distributes glass fiber, resins and other composite materials in the UK and Scandinavia.