Akzo sells Chefaro to Belgium's Omega

Akzo Nobel says that it has completed negotiations for the sale of itsover-the-counter pharmaceutical business Chefaro to Belgium-based Group Omega Pharma (Marketletter November 6, 2000). Omega will pay 105.7 million euros ($92.6 million) in cash for Chefaro and will assume 35 million euros of debt as part of the agreement.

Chefaro holds leading positions in the European pregnancy test market, the French and Spanish liquid skin disinfectant sector and the German and Dutch topical muscle pain relief markets. It employs approximately 280 people and posted sales of 90 million euros in 1999, representing 3% of Akzo's total pharmaceutical sales.

Paul Brons, the member of Akzo's board responsible for pharmaceuticals, said that the firm is focused on R&D-driven human health care and biopharmaceuticals production, "therefore we believe that the new owner will offer a more strategic and focused platform for Chefaro's business." Mr Brons added that the agreement "may create a true win-win situation," as its former employees will be able to work from a "more specialized entrepreneurial platform" while Akzo can further focus on its growth engines."