3 May 2005
Acquisition of Raw Material Manufacturing Operations from Degussa
Victrex plc announces the purchase of the operations owned by a subsidiary of Degussa AG relating to the manufacture of BDF (the key raw material from which VICTREX® PEEK™ polymer is produced) for cash consideration of £16.3 million. The transaction further consolidates Victrex’s control of the BDF supply chain following the acquisition of the primary manufacturing stage of BDF in 1999.
The operations acquired principally comprise an oxidation plant which undertakes the secondary manufacturing stage of BDF. As a result of the purchase, the joint arrangement with Degussa is terminated with immediate effect.
Details of the acquisition
Under the terms of the agreement, Victrex has purchased the oxidation plant which forms part of a larger Degussa site at Seal Sands in the north east of England.
In addition, Victrex has also purchased the remainder of the assets adjacent to its existing site at Rotherham where the primary manufacturing stage of BDF is conducted. These newly acquired assets principally comprise a plant that manufactures fluoroboric acid (a key raw material for the primary manufacturing stage) which is currently supplied to Victrex under an existing agreement with Degussa.
David Hummel, Chief Executive of Victrex plc, commented:
“The transaction completes another step for Victrex in consolidating our supply chain for the key raw material for VICTREX PEEK. Self-sufficiency in oxidation will give us even greater control of quality, costs and capacity.”
Reader enquiries
Helen SwarbrickVictrex plc
Victrex Technology Centre
Hillhouse International
Thornton Cleveleys
Lancashire FY5 4QD
United Kingdom
Tel +44 1253 897700
Fax +44 1253 897701
United Kingdom
Notes for editors
For the Editor:
Victrex plc, which has its sales, technical and production headquarters at Thornton Cleveleys in Lancashire, UK, had a turnover of more than £71.5m in the last financial year. The company exports 97 percent of its VICTREX® PEEK™ polymer output to OEMs in the automotive, industrial, medical, food and electronics market sectors in Europe, North America and Asia Pacific. Information on products, technical support services and sales and distribution contacts worldwide, can be accessed through the company’s web site: www.victrex.com
The PEEK™ trademark:
For many years Victrex plc has been using the PEEK™ trademark to refer to its brand of polyaryletherketone. Victrex plc is the sole manufacturer and supplier of the VICTREX® PEEK™ brand polymer worldwide. PEEK™ is a trademark of Victrex plc.
Editorial enquiries
Dave Wiggins
Victrex plc
Nathalie Chaimbault
EMG