DSM to Sell Sarlink Unit to Teknor Apex
Royal DSM, the global life sciences and materials sciences company headquartered in the Netherlands, today announces that it has reached an agreement regarding the sale of the business unit Thermoplastic Elastomers (Sarlink), part of the business group DSM elastomers, to Teknor Apex. The intended sale is expected to close in Q4, subject to regulatory and other customary approvals and notifications.
The intended sale of the business unit is a result of DSM's ambitions to focus on life sciences and materials sciences. As announced in September 2007, DSM Elastomers (Sarlink® and Keltan®) does not fit with this focus.
Both parties have agreed not to disclose financial details at this time. DSM expects to report a small book profit as a result of the transaction upon closing. Approximately 90 employees will transfer to the new owner upon closing.
Sarlink has compounding operations in Leominster (Massachusetts, U.S.) and Genk (Belgium). While the business unit will operate as an integral part of Teknor Apex, it will continue to sell its TPVs (thermoplastic vulcanizate) under the Sarlink name. In 2009 Sarlink realized net sales of over €50 million.
Nico Gerardu, member of the DSM managing board and responsible for the base chemicals and materials cluster, commented: "The sale of Sarlink is another important step for DSM in its ongoing transformation towards a life sciences and materials sciences company. As there is a natural fit with Teknor Apex, we see a bright future ahead for Sarlink under new ownership. I would like to thank all Sarlink employees for their ongoing support and substantial contribution to DSM."
Bertram M. Lederer, executive vide president of Teknor Apex said: "Teknor Apex is a good home for Sarlink, and the enhanced potential from our combined people and resources will benefit customers. The addition of the Sarlink TPV business strengthens the position of Teknor Apex as the world's most diversified independent compounder of TPEs and expands our portfolio at the high-performance end, particularly for automotive applications."
Sarlink is one of the two business units of the business group DSM elastomers. The selling process for Keltan (EPDM), the other business unit of DSM elastomers, as well as most of the remaining other businesses in base chemicals and materials is ongoing.
