Degussa Sells dmc2 to OMG
The disposal program of German chemicals group Degussa AG took a major step forward recently when it sold its dmc2 precious metals and catalysts unit to U.S. specialty metals producer OM Group, Inc. (OMG) for 1.2 billion euros ($1.08 billion). For Degussa, the sale was part of its strategy to focus on specialty chemicals and it follows its 422 million pound sale of its Phenolchemie unit to Ineos Group earlier this month. OMG's purchase price, which includes around 600 million euros of dmc2's debt, is about 1.2 times operating revenues and 10.9 times operating profits of the businesses it intends to keep. OMG is keeping the metals management, automotive catalysts, fuel cells, precious metals chemistry, technical materials and electroplating businesses. The Duesseldorf-based company, formed from the merger of Degussa-Huels and SKW Trostberg earlier this year, said the transaction amounted to about 1.7 billion euros including off-balance sheet precious metals leases worth 500 million euros.