Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Maire Tecnimont S.p.A., a leading international engineering and construction group headquartered in Italy, have announced that they have reached an agreement for the sale of DSM’s urea-licensing subsidiary Stamicarbon B.V. to Maire Tecnimont for a total consideration of EUR 38 million on a cash and debt-free basis. The intended sale is expected to close by the fourth quarter of 2009, subject to regulatory and other customary approvals and notifications.
Stamicarbon, founded in 1947, is the world market leader in licensing urea technology, with over 250 licensed urea plants located in over eighty different countries and a leading market share in new capacity. Stamicarbon realized net sales of EUR 57 million in 2008 and an operating profit of EUR 25 million. In 2008 Stamicarbon’s operating profit was exceptionally high as a result of a number of large contracts closed during the year. The average operating profit for Stamicarbon has been approximately EUR 10 million per year over the past four years. Stamicarbon employs about 50 people in urea licensing, almost all of whom are engineers and technical staff. Stamicarbon licenses patented technology and proprietary know-how to existing and prospective urea producers. Its non-urea licensing portfolio has been transferred to a new entity, Knowfort Technologies B.V., and is not part of the intended sale or the 2008 results of Stamicarbon.
“Stamicarbon will operate as a member of the Maire Tecnimont Group, in particular alongside Tecnimont, and will continue to generate licensing revenues and margins as a standalone activity,” said Fabrizio Di Amato, Maire Tecnimont chairman and CEO. “Contemporaneously, we foresee that Stamicarbon will enlarge our technology portfolio and, working with Tecnimont, enhance our EPC business in the fertilizer sector through synergies in the commercial, technology and operation areas by improving process efficiency and competitiveness.”
In September 2007, DSM announced that as a result of the accelerated strategic shift towards Life Sciences and Materials Sciences, a number of businesses that do not fit in with the strategy would be carved out and divested. Urea licensing is one of these businesses. The divestment process for DSM Elastomers, DSM Agro, and DSM Melamine is underway.