BASF to acquire Orgamol

BASF plans to expand its Pharma Solutions business by acquiring the Swiss fine chemicals company Orgamol S.A.

An agreement has already been reached with the private owners, who hold about 75% of Orgamol's shares. Approval for the transaction is still required from Orgamol's Swiss employees, who have a combined shareholding of 25% in the company via an employee foundation. In addition, the transaction is still subject to approval by the regulatory authorities.

The acquisition of Orgamol would place BASF among the top 10 providers of pharma contract manufacturing solutions in the world. "This is a strategic step on the way to expanding our fine chemicals business further and achieving sales of Euro 3bn.'said Martin Laudenbach, head of BASF's Fine Chemicals division. 'We will draw in particular on the enormous expertise of Orgamol's workforce to ensure our future success of our activities in the area of Pharma Solutions,' he continued.

Orgamol supplies ingredients to customers in the pharmaceutical industry, and in 2004 the company posted sales of approximately €100m. The planned acquisition includes the headquarters of Orgamol in Evionnaz close to Lake Geneva as well as the company's second production site in Saint-Vulbas near Lyon, France. Orgamol has about 450 employees at its two sites. The company was established in Switzerland in 1952 and has since then been in private ownership.