Milan, 5 June 2007 - Snia S.p.A. today announced closing the acquisition of the Iberian company Undesa, a leader company in the field of oil-chemical products, with a broad base of primary European customers in the following sectors: detergents, cosmetics, tyres, colouring agent, chemicals, plastics and pharmaceuticals, thereby executing the agreement entered into last 31st March 2007.
The deal was closed at a purchase price equal to 24.5 million Euros that will be paid within 15th June 2007.
The Undesa Group, which comprises Undesa (Union Derivan S.A) in Spain and Undesa Italia Srl., is headed by the General Manager Mr Foster Santiago Bargueño Carnicer and closed the 2006 financial year with a consolidated turnover amounting to 80.2 million Euros, reflecting an EBITDA of approximately 4.3 million Euros and a consolidated shareholders' equity of approximately 23.3 million Euros.
Snia has acquired Union Derivan S.A. directly, following the deal that involves 100% of the share capital of the two companies forming the Undesa Group. Union Derivan S.A. is a company actively engaged in the production, marketing and processing of high added value derivatives of oil-chemical products, while Caffaro Chimica has become the owner of Undesa Italia, with highly synergetic activities in the biodiesel area.
The new strategy is based on a market outlook that is focused more and more on substituting traditional, renewable raw materials (deriving from crude oil) with renewable raw materials (vegetable oils and fatty acids, glucose, cellulose, organic waste, proteins) which assure the Snia Group a long-term outlook that is both competitive and creates value, in line with the principles of sustainable growth.
Andrea Mattiussi, the Managing Director of Snia S.p.A, declares: 'The acquisition logic of the Undesa Group, besides the need for Caffaro Chimica to reduce the time to market in a highly attractive but strongly developing sector such as the oil chemical sector, is also based on the opportunities for a further development of products that the Undesa Group may achieve thanks to the Snia Group's basic and application research know-how and the expected advantages generated by integrating the customer portfolio and the distribution channels' – Andrea Mattiussi continues by saying - 'the integration project between the two organisations, Caffaro Chimica on the one hand, with the productions by the chlorine-sodium carbonate plant, and Undesa, on the other hand, above all, will involve the development of new products, not only associated with the application sectors in which the Group currently has a presence, but also the sectors related to biofuels, particularly biodiesel, to produce a fundamental component such as the catalysts (sodium methylate) or for the production of various esters to be used in the different industrial sectors (detergency, lubricants, polyurethanes, cosmetics)'.
2008 will undoubtedly be the turning point, in which the acquisition of Undesa will also exert its potential. In particular, integration with the Spanish group will enable the productive structure to be rationalised, will enhance the use and the central role played by Snia's R&D in the technological development of Undesa, will improve the logistics structure in Central Italy with attractive market prospects also for Snia's traditional business, will improve the territorial coverage of the export markets, and will spur the development and marketing of new products also with a view to enhancing relations and the range of offers to key customers.
PriceWatherhouseCoopers S.p.A. and Business Partners S.r.l., were the financial advisors to the transaction, while the legal practice Criscuoli, Onesti, Santoro & Partners and the Spanish, Barcellona-based practice Landwell were legal advisors.
