Akzo Nobel to Acquire Biomanufacturing Business from Covance

Apr 24, 2001, 01:00 ET from Covance Inc.

    PRINCETON, N.J., April 24 /PRNewswire Interactive News Release/ -- Covance
 Inc. (NYSE:   CVD), one of the world's largest and most comprehensive drug
 development services companies, today announced that Akzo Nobel's pharma
 business unit Diosynth will acquire Covance Biotechnology Services Inc. (CBSI)
 in a cash transaction valued at approximately $190 million. Closing of the
 transaction is targeted for mid-year of 2001.
     "We welcome the purchase by Diosynth," said Chris Kuebler, Chairman and
 CEO of Covance Inc.  "Using Diosynth's position as a reliable and committed
 partner for the innovative pharmaceutical industry is the best opportunity for
 growth at CBSI."
     Covance expects to receive net proceeds from the sale approximately $100
 million. In addition, operating lease guarantees, CBSI debt obligations and
 liabilities will be assumed by Akzo Nobel. Covance will use proceeds from the
 sale to reduce its senior revolver.
     CBSI is a leading provider of contract biomanufacturing services to major
 pharmaceutical and biotechnology companies for preclinical studies, clinical
 trials and commercial production, with a state-of-the-art manufacturing
 facility in North Carolina, USA. The CBSI acquisition represents an important
 strategic move for Akzo Nobel.  Through the acquisition of CBSI, Diosynth
 gains access to the large professional development group at CBSI, together
 with its commercial network in the US biotech market.  This combined with
 Diosynth's extensive industrial experience with Active Pharmaceutical
 Ingredient (API) manufacturing will create one of the world's leading
 companies in biopharmaceutical manufacturing.
     "This acquisition strengthens Diosynth's potential for continued growth as
 a supplier of active ingredients to the innovative pharmaceutical industry.
 It will also enable Diosynth to increase its market strength as one of the
 strategic technology platforms of Akzo Nobel Pharma, alongside Organon and
 Intervet," said Paul K. Brons, the member responsible for the Pharma Group on
 Akzo Nobel's Board of Management.  "The acquisition brings the added benefit
 of increasing Akzo Nobel's access to explorative biotech activities,
 especially those in the USA", he added.
     "The timing of this acquisition is perfect," said Johan Evers, General
 Manager of Diosynth.  "We have just opened our large downstream processing
 facility.  And our new cell culture and fermentation plant will be on stream
 by the end of 2002.  Combined with the increasing demand for biotechnology-
 based medicines, the acquisition will greatly enhance Diosynth's position as a
 supplier of biopharmaceutical APIs", explained Mr. Evers.
     Lehman Brothers represented Covance in connection with this transaction.
 CS First Boston represented Akzo Nobel.
 
     Covance Inc.
     Covance, with headquarters in Princeton, N.J., is one of the world's
 largest and most comprehensive drug development services companies with 2000
 revenues of $868 million, operations currently in 17 countries, and
 approximately 7,900 employees worldwide. Pro forma income statements excluding
 financial results for Covance's biomanufacturing business for the full year
 2000 will be available post closing of the transaction.
 
     Akzo Nobel
     Akzo Nobel, based in the Netherlands, serves customers throughout the
 world with healthcare products, coatings and chemicals.  Consolidated sales
 for 2000 totaled some EUR 14 billion (USD 13 billion, GBP 8.5 billion).  The
 Company currently employs 68,400 people in 75 countries.
 
     Diosynth
     Diosynth, a business unit of Akzo Nobel, is a market-driven and technology
 based manufacturer of active pharmaceutical ingredients.  Headquartered in the
 Netherlands, Diosynth has about 2300 employees and reached sales in 2000 of
 $350 million (EUR 380 million).
 
     This announcement includes forward-looking statements.  Covance has based
 these forward-looking statements on its current expectations and projections
 about future events.  Although Covance believes that its assumptions made in
 connection with the forward-looking statements are reasonable, no assurances
 can be given that their assumptions and expectations will prove to have been
 correct.  These forward-looking statements are subject to various risks,
 uncertainties and assumptions, including the assumption that the transaction
 will close as anticipated.  Covance undertakes no obligation to publicly
 update or revise any forward-looking statements, whether as a result of new
 information, future events or otherwise.  In light of these risks,
 uncertainties and assumptions, the forward-looking events discussed in this
 announcement might not occur.
 
     NOTE: Today's news release, along with other news about Covance, Akzo
 Nobel and Diosynth, is available on the Internet at www.covance.com,
 www.akzonobel.com and www.diosynth.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51022473
 
 

SOURCE Covance Inc.
    PRINCETON, N.J., April 24 /PRNewswire Interactive News Release/ -- Covance
 Inc. (NYSE:   CVD), one of the world's largest and most comprehensive drug
 development services companies, today announced that Akzo Nobel's pharma
 business unit Diosynth will acquire Covance Biotechnology Services Inc. (CBSI)
 in a cash transaction valued at approximately $190 million. Closing of the
 transaction is targeted for mid-year of 2001.
     "We welcome the purchase by Diosynth," said Chris Kuebler, Chairman and
 CEO of Covance Inc.  "Using Diosynth's position as a reliable and committed
 partner for the innovative pharmaceutical industry is the best opportunity for
 growth at CBSI."
     Covance expects to receive net proceeds from the sale approximately $100
 million. In addition, operating lease guarantees, CBSI debt obligations and
 liabilities will be assumed by Akzo Nobel. Covance will use proceeds from the
 sale to reduce its senior revolver.
     CBSI is a leading provider of contract biomanufacturing services to major
 pharmaceutical and biotechnology companies for preclinical studies, clinical
 trials and commercial production, with a state-of-the-art manufacturing
 facility in North Carolina, USA. The CBSI acquisition represents an important
 strategic move for Akzo Nobel.  Through the acquisition of CBSI, Diosynth
 gains access to the large professional development group at CBSI, together
 with its commercial network in the US biotech market.  This combined with
 Diosynth's extensive industrial experience with Active Pharmaceutical
 Ingredient (API) manufacturing will create one of the world's leading
 companies in biopharmaceutical manufacturing.
     "This acquisition strengthens Diosynth's potential for continued growth as
 a supplier of active ingredients to the innovative pharmaceutical industry.
 It will also enable Diosynth to increase its market strength as one of the
 strategic technology platforms of Akzo Nobel Pharma, alongside Organon and
 Intervet," said Paul K. Brons, the member responsible for the Pharma Group on
 Akzo Nobel's Board of Management.  "The acquisition brings the added benefit
 of increasing Akzo Nobel's access to explorative biotech activities,
 especially those in the USA", he added.
     "The timing of this acquisition is perfect," said Johan Evers, General
 Manager of Diosynth.  "We have just opened our large downstream processing
 facility.  And our new cell culture and fermentation plant will be on stream
 by the end of 2002.  Combined with the increasing demand for biotechnology-
 based medicines, the acquisition will greatly enhance Diosynth's position as a
 supplier of biopharmaceutical APIs", explained Mr. Evers.
     Lehman Brothers represented Covance in connection with this transaction.
 CS First Boston represented Akzo Nobel.
 
     Covance Inc.
     Covance, with headquarters in Princeton, N.J., is one of the world's
 largest and most comprehensive drug development services companies with 2000
 revenues of $868 million, operations currently in 17 countries, and
 approximately 7,900 employees worldwide. Pro forma income statements excluding
 financial results for Covance's biomanufacturing business for the full year
 2000 will be available post closing of the transaction.
 
     Akzo Nobel
     Akzo Nobel, based in the Netherlands, serves customers throughout the
 world with healthcare products, coatings and chemicals.  Consolidated sales
 for 2000 totaled some EUR 14 billion (USD 13 billion, GBP 8.5 billion).  The
 Company currently employs 68,400 people in 75 countries.
 
     Diosynth
     Diosynth, a business unit of Akzo Nobel, is a market-driven and technology
 based manufacturer of active pharmaceutical ingredients.  Headquartered in the
 Netherlands, Diosynth has about 2300 employees and reached sales in 2000 of
 $350 million (EUR 380 million).
 
     This announcement includes forward-looking statements.  Covance has based
 these forward-looking statements on its current expectations and projections
 about future events.  Although Covance believes that its assumptions made in
 connection with the forward-looking statements are reasonable, no assurances
 can be given that their assumptions and expectations will prove to have been
 correct.  These forward-looking statements are subject to various risks,
 uncertainties and assumptions, including the assumption that the transaction
 will close as anticipated.  Covance undertakes no obligation to publicly
 update or revise any forward-looking statements, whether as a result of new
 information, future events or otherwise.  In light of these risks,
 uncertainties and assumptions, the forward-looking events discussed in this
 announcement might not occur.
 
     NOTE: Today's news release, along with other news about Covance, Akzo
 Nobel and Diosynth, is available on the Internet at www.covance.com,
 www.akzonobel.com and www.diosynth.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51022473
 
 SOURCE  Covance Inc.