DSM sells polymers, resins stake to CVC for at least 300 mln euros

AMSTERDAM, March 16 (Reuters) - Dutch supplements maker DSM (Swiss: DSM.SW - news) said on Monday it will sell a 65 percent stake in two of its chemicals subsidiaries to CVC Capital Partners for at least 300 million euros ($316 million) in cash.

DSM said the disposal will make its earnings less cyclical and allow it to focus on what it says is its core business in nutrition and high-performance materials.

Under the deal, DSM will place its polymer intermediates and composite resins businesses into a new company, with CVC (Taiwan OTC: 4744.TWO - news) taking a 65 percent stake and DSM retaining 35 percent.

The new company had proforma sales of 2.1 billion euros in 2014 and core earnings of 106 million euros, as measured by earnings before interest, taxes, depreciation and amortisation of goodwill. DSM said the business's enterprise value, including debt, is 600 million euros.

The polymer businesses make caprolactam, used in making nylon, and acrylonitrile, used in synthetic rubbers. Composite resins are used in gel coatings and adhesives.

DSM will receive at least 300 million euros in cash and up to 50 million euros more, depending on the new company's performance.

DSM, which announced its intention to sell the activities in November, will book a loss of 130 million euros on the disposal in the first quarter. It expects the deal to close in the third quarter of 2015, pending regulator approval. ($1 = 0.9497 euros) (Reporting by Toby Sterling; editing by David Clarke)