Czech defence group CSG acquires IFF's nitrocellulose production in Germany
PRAGUE, Oct 24 (Reuters) -Czech defence and industrial firm Czechoslovak Group (CSG) said it will acquire IFF's IFF.N nitrocellulose business in Germany and the industrial park where it is located, part of expansion in chemicals serving the defence industry.
Under IFF, the business has manufactured nitrocellulose for industrial purposes, serving customers primarily in coatings and printing inks. IFF's products also include ingredients for food, beverages and personal care items.
CSG said it would look to also include energetic nitrocellulose production, used for defence purposes, consistent with its other businesses, over time. That will involve investment and consultation with regulatory authorities.
Financial details of the transaction were not disclosed.
"Even in the current situation, when the chemical industry in Europe is facing high energy prices and demanding regulation, the production of nitrocellulose for the ammunition industry and other important industries... can ensure a long-term prospect for companies operating in this field," Jan Marinov, head of CSG's defence division, said.
"Energetic nitrocellulose production is strategically important for the security of NATO and European Union countries and their allies."
The deal is expected to close in the first half of 2025.
Privately-held CSG has seen its earnings sharply rise amid ramped-up defence spending in the wake of Russia's invasion of Ukraine in 2022, and has sought to expand.
It is closing in on a deal to buy U.S. group Vista Outdoors ammunitions business Kinetic for $2.2 billion after refining its offer this month.
Reporting by Jason Hovet. Editing by Jane Merriman
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