BASF Plans Acquisition Of Fine Chemical Company Orgamol

BASF Aktiengesellschaft plans to expand its Pharma Solutions business by acquiring the Swiss fine chemicals company Orgamol S.A. An agreement has already been reached with the private owners, who hold about 75 percent of Orgamol's shares. Approval for the transaction is still required from Orgamol's Swiss employees, who have a combined shareholding of 25 percent in the company via an employee foundation. In addition, the transaction is still subject to approval by the regulatory authorities.

All Swiss employees at Orgamol have been invited by the foundation to a meeting on June 25, 2005 to vote on the sale of the remaining shares to BASF. The sale must be ratified by two-thirds of the employees present at the meeting.

The acquisition of Orgamol would place BASF among the top 10 providers of pharma contract manufacturing solutions in the world. "This is a strategic step on the way to expanding our fine chemicals business further and achieving sales of €3 billion and an EBITDA margin before special items of 20 percent," said Martin Laudenbach, head of BASF's Fine Chemicals division. "We will draw in particular on the enormous expertise of Orgamol's workforce to ensure our future success of our activities in the area of Pharma Solutions," he continued.

Orgamol is an important player in the contract manufacturing market and supplies exclusive ingredients to customers in the pharmaceutical industry. In 2004, the company posted sales of approximately €100 million. The planned acquisition includes the headquarters of Orgamol in Evionnaz close to Lake Geneva as well as the company's second production site in Saint-Vulbas near Lyon, France. Orgamol has about 450 employees at its two sites. The company was established in Switzerland in 1952 and has since then been in private ownership.

BASF offers an extensive range of pharmaceutical active ingredients and excipients. BASF's Pharma Solutions unit has approximately 800 employees and is part of the Fine Chemicals operating division, which globally develops, produces and markets high-value products for human and animal nutrition and for the cosmetics and pharmaceutical industries.

SOURCE: BASF