April 2, 2007

Akzo Nobel sells Methylamines and Choline Chloride businesses

Dutch chemicals and healthcare company Akzo Nobel has agreed to sell its European-based Methylamines and Choline Chloride or MACC businesses to Balchem Corporation.

The deal is seen as the finale act in the company's Chemicals divestments plan which began in 2005 "following the strategic realignment of its Chemicals portfolio," explained Leif Darner who sits on the Akzo Nobel board for Chemicals.

Balchem Corporation, headquartered in New York, entered into the agreement via its European subsidiary, Balchem BV. Under the terms set out, Balchem will acquire the businesses--located in Marano Ticino, Italy--from Akzo Nobel Chemicals S.p.A, for an undisclosed sum.

Per the agreement, Akzo Nobel's operations in Marano Ticino and approximately 80 employees will be transferred to Balchem. Unions and employee representative bodies have been informed and where necessary, consultation procedures will commence shortly, states the former's press release. It added that regulatory approvals will be sought where appropriate.

"We are confident that this transaction will be a positive step both for the business and its employees," assures Azko Nobel's Darner.

For Balchem, the new acquisition can be seen to give the company its first foray into Europe. Says Dino A Rossi, president, CEO and chairman of the board of directors of Balchem: "This acquisition is very strategic for Balchem in many respects. It should provide many opportunities for Balchem's global growth plans."

Akzo Nobel MACC is one of the leading producers worldwide for choline chloride and a medium size producer for methylamines. Choline chloride is an essential nutrient for optimum animal growth. Methylamines are used as raw materials for the production of choline chloride and are also widely used in many chemical and industrial applications, including the synthesis of feed additives.

Balchem Corporation consists primarily of three business segments: ARC Specialty Products, Encapsulated/Nutritional Products, and BCP Ingredients. BCP Ingredients manufactures and supplies choline chloride and derivatives used primarily in the poultry and swine industries.