SOURCE: DSM N.V.

November 19, 2008 02:20 ET

DSM to divest DSM Deretil in management buy-out

HEERLEN, NETHERLANDS--(Marketwire - November 19, 2008) -


Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, announces today that it has reached an agreement with the management of DSM Deretil on a management buy-out. DSM Deretil is a business unit of DSM Anti-Infectives. Financial details will not be disclosed.

This divestment fits in the strategic review of DSM Anti-Infectives as announced in June 2007. DSM believes the greatest value will be generated through a partnering strategy combined with innovation initiatives and restructuring measures. The review opened possibilities for divestments of separate businesses, such as DSM Deretil.

Jan Zuidam, Deputy Chairman of the Managing Board of Directors of Royal DSM said: "This transaction gives better chances for DSM Anti-Infectives to fully focus on its core future activity as a leading player in generic API's, and for Deretil to focus on the specific dynamics of the side chain business. This is a good move for both parties, and we are convinced this will in the near future turn out a win for all involved."

Deretil will completely focus on its core business: the marketing, sales and manufacturing of side-chains for the production of Active Pharmaceutical Ingredients (API's). Lluis Franquesa, president of Deretil: "We are proud that DSM has put the trust in us to take over full responsibility and ownership of Deretil. We as management team of Deretil are fully aware of our responsibilities towards, our people, our customers and the society in which we operate, and are fully prepared to take this responsibility. We will continue as planned the previously announced restructuring of the manufacturing base, involving the closure of one of the plants on the Villaricos site in Spain and moving the production from that plant to China."

There is no significant impact on the employees of Deretil expected as direct consequence of this management buy-out. The effect of the sale of DSM Deretil on DSM's total net sales will be approximately EUR 35 million. The book result of the transaction is, on balance, not expected to be material.

DSM Anti-Infectives

DSM Anti-Infectives is the world's leading supplier of active pharmaceutical ingredients such as amoxicillin, ampicillin, cephalexin and cefadroxil, the worlds most widely used broad spectrum antibiotics for combating bacterial infections. Its product portfolio also includes nystatin, penicillin, penicillin intermediates (6-APA and 7-ADCA) and industrial enzymes. The company is headquartered in Delft, the Netherlands, and has a global presence with manufacturing facilities in Europe, Africa, China and India and sales offices across the globe. More information can be found on http://www.dsm.com/en_US/html/dai/daihomepage.htm.

DSM Deretil

DSM Deretil is part of Royal DSM N.V., through its business group DSM Anti-Infectives. DSM Deretil's core production plant is in Villaricos, Spain, and Deretil runs another facility in China. The main offices are in Barcelona with an extensive commercial network in Europe, America and Asia, with over 400 employees. DSM Deretil's safety, health and environment program complies with the most demanding international standards and has the highest priority for the management and its employees. DSM Deretil adheres to the Responsible Care Program. The world's leading antibiotics are all manufactured from the raw materials produced by Deretil. More information can be found on http://www.dsm.com/en_US/html/deretil/Deretil_Home.htm

DSM - the Life Sciences and Materials Sciences Company

Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM's products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrics and electronics, life protection and housing. DSM has annual sales of almost EUR 8.8 billion and employs some 23,000 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More information: www.dsm.com.

For more information:


DSM Corporate Communications               DSM Investor Relations
Herman Betten                              Hans Vossen
tel. +31 (0) 45                            tel. +31 (0) 45 5782864
5782017                                    fax +31 (0) 45 5782595
fax +31 (0) 45                             e-mail
5740680                                    investor.relations@dsm.com
e-mail media.relations@dsm.com

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