Roche sells its vitamins and fine chemicals division to DSM

Swiss-based Roche is to sell its vitamins and fine chemicals division to Dutch life science products and performance materials company DSM. The Roche division is the world's leading supplier of vitamins and carotenoids with annual sales in 2001 of Sfr3.5bn (€2.4bn). The division, which employs 7,500 people, will become a unit of DSM in Kaiseraugst, Switzerland.

The deal, which is subject to regulatory approval, is worth €2.25bn, but Roche will remain responsible for present and future liabilities from the vitamin price fixing case. According to Franz B. Humer, chairman and ceo of Roche, the move enables the company to focus on its two high-tech areas of pharmaceuticals and diagnostics.

For DSM the acquisition is an important step in its strategy to concentrate on life science products and performance materials. The company aims to grow its sales to about €10bn by 2005 through organic growth as well as acquisitions.

Peter Elverding, chairman of DSM's managing board, said: 'The combination of DSM's life science products and Roche's V&FC will be the world's leading supplier to the life science industry. It will have a unique and coherent portfolio of businesses. We see opportunities to achieve significant benefits for Roche's and DSM's businesses in these areas.'