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Airtech

Acquisition of Raw Material Manufacturing Operations from Degussa

13 May 2005

Victrex plc have purchased the operations owned by a subsidiary of Degussa AG relating to the manufacture of BDF (the key raw material from which Victrex Peek polymer is produced) for cash consideration of 16.3 million GBP.

The transaction further consolidates Victrex’s control of the BDF supply chain following the acquisition of the primary manufacturing stage of BDF in 1999.

The operations acquired principally comprise an oxidation plant which undertakes the secondary manufacturing stage of BDF. As a result of the purchase, the joint arrangement with Degussa is terminated with immediate effect.

Under the terms of the agreement, Victrex has purchased the oxidation plant which forms part of a larger Degussa site at Seal Sands in the north east of England.

In addition, Victrex has also purchased the remainder of the assets adjacent to its existing site at Rotherham where the primary manufacturing stage of BDF is conducted. These newly acquired assets principally comprise a plant that manufactures fluoroboric acid (a key raw material for the primary manufacturing stage) which is currently supplied to Victrex under an existing agreement with Degussa.

David Hummel, Chief Executive of Victrex plc, said “the transaction completes another step for Victrex in consolidating our supply chain for the key raw material for Victrex Peek. Self-sufficiency in oxidation will give us even greater control of quality, costs and capacity.”