Hansa Group AG continues to focus on its core operating business and divests 'Chemicals Trading' business

- Focus remains on Care Chemicals for detergents, household products and body care

- Optimization of both operating business and balance sheet

Genthin, October 1, 2012 − Hansa Group AG, a leading and integrated European supplier of Care Chemicals, is continuing to consistently enforce the strategic focus on its core value chain the production of 'detergent, household products and body care' products and divests its 'Chemicals Trading' business. The closing of the transaction follows the objective to emphasize the strategic focus on the Care Chemicals business and consequently, the development, production and marketing of detergents, household products and body care. The business is being divested to Gnann GmbH & Co. KG, Düsseldorf, a subsidiary of Max Prestige General Trading LLC, Dubai. The parties agreed to maintain confidentiality about the details of the agreement. The transaction will take effect on October 1, 2012.

Thomas Pfisterer, speaker of the Hansa Group AG Management Board says: 'By divesting our trading business, we are following our long-term strategy of increasing our focus on the more profitable Care Chemicals value chain, which we deliberately chose to strengthen in recent years with strategic acquisitions of WIBARCO GmbH, parts of the Henkel plant in Genthin and the Luhns GmbH. The synergy potential from the joint ownership of the Care Chemicals business and the chemicals trading business is limited for Hansa Group given the diverse nature of each of the segment's value chain and lacking overlap of their respective target markets. Under the umbrella of a global trader such as Max Prestige General Trading LLC, however, much greater use can be made of the strengths of the broadly diversified high-quality product portfolio and the excellent access to trading business customers and suppliers.'

The proceeds from the sale and funds that are no longer tied up in the trading business are also providing Hansa Group with additional finance to strengthen its core business. In addition to expanding its product portfolio and market presence, the Group plans to develop its Genthin site into a high-performance chemical plant.

The global chemicals trading sector is currently going through a consolidation period, at the end of which larger global traders are likely to gain the upper hand. Hansa Group AG's main regional focus lies in Europe and its medium- and long-term strategy is to expand the value chain of its core activities in the Care Chemicals business and to continue expanding this segment.

During the carve-out, Hansa Group will ensure that customers of chemicals trading business will receive their orders with the customary quality, speed and service. Clients will benefit from even more efficient business processes and services that are specifically tailored to their requirements once the trading business has been integrated in the new structure.

'By selling this business we will create even leaner and more efficient operating structures within Hansa Group, which are expected to have positive effect on our key financial ratios. With the expansion of the product portfolio, we are planning to increase our market share in Europe in the care chemicals market for detergents, household products and body care and to further strengthen our market position,' comments Thomas Pfisterer.

'The chemical trading business that we acquired from Hansa Group will benefit from the integration into our global chemical trading business. Due to its excellent product portfolio and its deep relationship with clients and suppliers throughout the globe we will be an even more preferred partner of our customers. The requirements of our customers are core to our strategy. Due to a bigger critical mass within the new business structure, our customers will benefit from an increased efficiency, even more focused service, faster support, higher speed and increased competitiveness', says Habib Khoshnevissan, president of Max Prestige General Trading LLC, Dubai.