BASEL, Switzerland — The agreed sale of Ciba Specialty Chemicals’ Performance Polymers business to a new company established by Morgan Grenfell Private Equity Ltd. (MGPE), the private equity arm of the Deutsche Asset Management, was completed in late May 2000. Ciba announced the sale of its Performance Polymers business to MGPE in December 1999.
Ciba estimates that the transaction will have an approximately neutral effect in terms of earnings per share for discontinued operations. The company plans to use the proceeds from the sale to repay debt and for corporate-development purposes.
“With the divestment of the Performance Polymers Division, we exit specialty materials and focus purely on specialty chemicals. The growth and profitability potential of our portfolio are increased. The transaction considerably strengthens the financial position of Ciba,” said Rolf A. Meyer, chairman and chief executive of Ciba Specialty Chemicals. “This also allows the company to further strengthen the development of innovative, high-value effects for our specialty chemicals customers,” Meyer added.
