Ciba set to take over Raisio Chemicals

Ciba Specialty Chemicals has signed an agreement to purchase Raisio Chemicals of Finland, from Raisio Group, for Euro 475 million (CHF 736 million). Raisio Chemicals sales for 2003 were Euro 422 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. Ciba hopes that the combined product portfolios will provide global customers with an opportunity for broad ‘one-stop shopping’ solutions. It believes that the combined market strengths, in different geographic areas, will open substantial cross-selling and market penetration opportunities.  

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 will remain. In addition, Ciba will install a regional support structure, based in Finland, for the development of all business in Scandinavian countries and Russia. 

Armin Meyer, chairman and CEO of Ciba Specialty Chemicals, comments: ‘The planned acquisition of Raisio Chemicals is a first-class strategic fit and a complementary expansion of our business. This move will create a top-tier player in the paper chemicals supply field, with a broader line of products and also a much wider geographic reach. ‘By combining our strong R&D operations, near key European customers, we will be better positioned to meet their future needs.’