Germany’s Degussa is buying Dow’s superabsorbent polymers business in a move which will strengthen its already strong position in a sector showing good growth rates.
The deal, for an undisclosed sum and requiring regulatory approvals, covers Dow’s facility in Germany as well as a toll manufacturing agreement with Dow’s superabsorbent facility at Midland, in the US, that lasts until next year.
It also includes a supply arrangement with Dow for glacial acrylic acid, the feedstock in the production of superabsorbing polymers, which are used in diapers and feminine hygiene articles.
Ted Cosse, Dow business vp for acrylics, solvents and intermediates said the company was finding it too difficult to justify the investments needed to satisfy large global customers for superabsorbers.
Degussa claims market leadership in the superabsorber sector with 2004 sales of E432m from a 500 strong workforce. Rival BASF has also been expanding with acquisitions from Clariant and Chemdal in recent years.
