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Roche vitamins deal

This article was originally published in The Tan Sheet

Executive Summary

DSM acquires Roche's vitamins, carotenoids and fine chemicals business for roughly $2.09 bil. (€1=$1.07), firms say Feb. 10. The original $2.24 bil. price tag agreed upon in September was lowered due to the "continued slow-down of the world's economies and the weakening" of the U.S. dollar versus the Swiss Franc, "which both had a negative impact on the vitamin business performance compared to earlier forecasts," firms say (1"The Tan Sheet" Sept. 9, 2002, p. 6). DSM will pay Roche roughly $1.99 bil. in cash and $107.4 mil. in DSM stock. Roche will take an impairment charge of $1.2 bil. in its 2002 results and will increase its provisions for liabilities relating to vitamin price-fixing charges. The transaction is slated to close in Spring pending approval by antitrust authorities...

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Roche Vitamins

"Adverse development of the world vitamin market" led to approximately $230 mil. reduction ($1=€.87) in sale price of Roche's vitamin unit to DSM, Swiss firm says during July 23 earnings call. Acquisition price previously had been set at $2.09 bil. (1"The Tan Sheet" Feb. 17, 2003, In Brief). Transaction closure, which was slated for this spring, has been pushed back to Q3 pending European Union and FTC approval...

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U.S. dollar prices of Roche's vitamins, carotenoids and selected fine chemicals will increase 12% effective July 1, Dutch firm announces. "Our products are currently undervalued and current price levels are not sustainable," company explains. Roche is still awaiting FTC, EU Commission approval before it can complete sale of its vitamin unit to Dutch firm DSM (1"The Tan Sheet" Feb. 17, 2003, In Brief)...

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U.S. sales of Aleve, which is marketed though joint venture with Bayer, dipped 11% in 2002, contributing to OTC sales decline of 7% (2% in local currencies) for the year, firm reports Feb. 26. Swiss firm's consumer health sales also suffered from currency problems in Latin America, "particularly the devaluation of the Argentinean peso," Roche says. Total OTC sales for 2002 dropped to $1.15 bil., while firm's overall pharmaceutical sales inched up 2% (9% in local currencies) to $14.27 bil. (1 CHF=74¢). Roche is in the process of divesting its vitamins & fine chemicals division to DSM (1"The Tan Sheet" Feb. 17, 2002, In Brief)...

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