Partnership New Company for Polymer Intermediates and Composite Resins

DSM partners with CVC Capital to form a new company, provisionally called NewCo., for DSM's activities in Polymer Intermediates (Caprolactam and Acrylonitrile) and Composite Resins

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Heerlen/Niederlande, London/United Kingdom —The dutch life sciences and materials sciences company, Royal DSM and CVC Capital Partners (CVC) investment advisory firm, announced a partnership for DSM's activities in Polymer Intermediates (Caprolactam and Acrylonitrile) and Composite Resins through the formation of a new company, provisionally called NewCo. NewCo will be 65% owned by CVC and 35% by DSM, with 1,950 employees

Feike Sijbesma, CEO and Chairman of the Managing Board of Royal DSM said: "This proposed transaction delivers on the strategic actions DSM announced for these businesses in November 2014 and is a decisive step in further optimizing our portfolio and reducing our cyclicality. We have found a good partner in CVC after a careful process in which we evaluated all options. We believe the partnership with CVC is the best way forward for these businesses.“

He continues: "NewCo will operate as an independent, dedicated company under the leadership of CVC. DSM can now focus fully on improving the operational performance of its Nutrition and Performance Materials businesses as well as benefitting from the future value creation in this new venture. This transaction is geared towards value creation for these businesses and is consistent with our commitment to continue to generate value for our stakeholders and deliver on our strategy."

Steven Buyse, Partner at CVC Capital Partners, added: "We are excited about partnering with DSM and bringing our experience and expertise to bear to further leverage the leading market positions of the businesses. We look forward to working with such a dedicated and talented group of employees to build on the strong existing customer base and create value for all of our stakeholders".

NewCo will continue to supply at least 80% of DSM Engineering Plastics' caprolactam needs in Europe and North America for the coming 15 years via a drawing rights contract, effectively maintaining DSM Engineering Plastics' backward integration. In China DSM Engineering Plastics will continue to be supplied by NewCo as today. This secures an ongoing strategic and competitive position for the polyamide 6 business in which DSM is a global leader.

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