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Ciba Specialty Chemicals signs deal to purchase Raisio Chemicals paper business in Finland

19 Mar 2004 - Ciba Specialty Chemicals announced that it has signed an agreement to purchase Raisio Chemicals of Finland, from Raisio Group, for Euro 475 million (CHF 736 million), creating a top-tier chemical supplier in the paper industry. Raisio Chemicals sales for 2003 were Euro 422 million, or approximately CHF 650 million. The agreement is expected to close in the second or third quarter of 2004, subject to the customary regulatory review.
 
The purchase brings together two complementary paper chemical supply businesses. The combined product portfolios will provide global customers with an opportunity for broad "one-stop shopping" solutions. The combined market strengths, in diversified geographic areas, will open substantial cross-selling and market penetration opportunities. Raisio Chemicals has some 1,100 employees, one-third of whom are based in Finland.
 
Ciba Specialty Chemicals plans to further build on Raisio Chemicals' strategic positioning in the Scandinavian market, the center of the global paper industry. Ciba will combine its product development, application technology and technical customer service operations in Finland and fully utilize Raisio Chemicals' Technology Campus in Turku. The existing Raisio Chemicals marketing centers in Finland would remain. In addition, Ciba will install a regional support structure, based in Finland, for the development of all business in Scandinavian countries and Russia. The acquisition is expected to be earnings enhancing in the second year and to contribute to the sales and margin growth targets of the segment and the group. One-time restructuring costs, to implement synergy savings, are currently estimated at less than CHF 100 million after taxes. As is customary, an independent firm will separately appraise in-process R&D.