2.12.2•TheintendedacquisitionbyDSMoftheVitamins,CarotenoidsandFineChemicalsbusinessofRocherepresentsamajorstepintheimplementationofDSM’sstrategyVision2005.ThestrategicimpactofthistransactionispresentedbyPeterElverdingintheprecedingchapter.Inthispresentationthemainemphasiswillbeplacedonthebusinessrationaleofthisacquisition,andontheprospectsforthenewcombination.Thefinancialaspectsofthedealwillalsobediscussed.•TheintendedacquisitionoftheVitamins,CarotenoidsandFineChemicalsbusinessofRochewillbethenextmajorstepintheevolutionofDSM’sLifeScienceProductsbusiness.DSMhasbuilditspresenceinthisindustryoverthelast20years,throughaconsistentpolicyofacquisitionsandorganicgrowth.Inthepresentationofprof.dr.HeinSchreuder(seechapter3)thisstrategyiselucidated,inthecontextofDSM’soverallgrowthstrategyofthelastdecades.•Thispresentationhas6paragraphs.InthefirstplaceanoverviewwillbegivenoftherelevantaspectsofthecurrentstateofaffairsandrecentdevelopmentsrelatingtotheactivitiescomprisedtodayintheLifeScienceProductsclusterofDSM.NexttothatthecurrentportfoliooftheVitamins,CarotenoidsandFineChemicalsbusinessofRochewillbepictured.Havingdonethat,therationaleofthecombinationofthesetwobusinesseswillbediscussed.Paragraph4and5willdiscussthemarketpositionofthebusinessalsoincombinationwithDSM’scurrentLSPbusiness.Inthelastparagraph,tobepresentedbyHenkvanDalen,thefinancialaspectsoftheintendedtransactionaredealtwith.•In2001totalnetsalesoftheLifeScienceProductsclusterofDSMamounted€2.2billion,representing39%ofDSM’stotalnetsalesfromcontinuedactivities.TheactivitiescomprisedintheLifeScienceProductsclusterofDSMhaveincommonthattheyarefocusedonsupplyingtheLifeScienceIndustrywithhighvalueaddedingredients,intermediates,activecompoundsandformulations.Theproductportfolio,aswellastheproductiontechniquesappliedbyDSMarecharacterizedbyahighdegreeofinnovation.DSMhasoneofthemostextensivetoolboxesintheindustryavailable,comprisedofabroadsetofchemicalskills&knowhowrelatedtoallaspectsoforganicchemistry,aswellasaleadingpositioninbiotechnology,withoutstandingcapacitiesinbiocatalystsandfermentationprocesses,bothsmallscaleaswellaslargescaleandontopofthisastrongformulationknowledge.BusinessgroupsformingpartofDSM’sLifeScienceProductclusterachievemajorsynergisticbenefitsthroughintensivecollaborationinthefieldofresearchanddevelopment,inparticularinbiotechnologyandthroughtheshareduseofproductionsitesandfacilities.In2001theBusinessGroupscomprisedinDSM’sLSPclusteremployedintotal9,700people,andhadproductionsiteson5continents.•MostimportantmarketforDSM’sLifeScienceProductstodayishumanpharma,representingin200147%ofthesalesofDSMLSP.DSMisglobally#1intheproductionofPenicillinandPenicillinderivativesandisthelargestsupplierofintermediates,activeingredients,and(sterile)dosageformulationservicestothepharmaindustry.DSMBiologicshasagloballeadingposition(#3)withregardtotheproductionoftherapeuticproteins.ThesecondmostimportantmarketforDSMLSPiscurrentlytheprocessedfoodindustry,representing38%oftotalnetsalesofthiscluster.DSMhasaleadingposition(#1-2,or3)inthesupplyofseveralingredientsandmarketsegments,holdinganoverall#8positioninthetotalglobalmarketofingredientsforthisindustry.In2001arelativelysmallportionoftotalsaleswasdirectedattheanimalfeedindustry.Butregardingtheproductsproducedforthismarket,notablythefeedenzymes,DSMholdsaglobal#1position.2.3...
