Key Events Affecting Business Performance
Acquisitions and Investments
In 2021, WACKER strengthened its biopharmaceutical segment with the acquisition of the US-based pDNA manufacturer Genopis. Genopis’ expertise in pDNA technology enables WACKER BIOSOLUTIONS to expand its portfolio as a contract manufacturer for the pharmaceutical industry and to build up a local presence in the US market for biopharmaceutical products. The purchase price is US$36 million plus possible additional performance-based payments. WACKER SILICONES bolstered its silicone business in China and acquired a 60-percent stake in specialty silane manufacturer SICO Performance Material Co., Ltd. Organofunctional silanes are important ingredients in high-performance adhesives and sealants, as well as in coatings and composites. The transaction is expected to be completed in the first half of 2022 after the necessary regulatory and antitrust approvals have been granted. The purchase price of the investment is €120 million.
The Federal Ministry for Economic Affairs and Climate Action did not issue the foreign trade clearance required for the merger of Siltronic AG with GlobalWafers Co., Ltd. by the deadline for the close of the transaction on January 31, 2022. As a result, the planned merger will not materialize. Consequently, the irrevocable undertaking signed by WACKER and GlobalWafers is void. Under this agreement, WACKER undertook to sell its 30.83-percent stake in semiconductor company Siltronic to GlobalWafers. In the financial statements for 2021, WACKER no longer recognized this investment as assets held for sale, but once again as an equity-accounted investment.
Capital expenditures increased year over year, as planned, coming in at €343.8 million (2020: €224.4 million). The focus of our investing activities was on the chemical divisions, with several projects in different countries. We are expanding our capacities in Nanjing, China, with a new reactor for dispersions and a spray dryer for dispersible polymer powders. In Amsterdam, we invested in setting up vaccine production capacity and in biopharmaceutical production plants. WACKER also invested in a series of small- and medium-scale projects for intermediates and downstream products, and in infrastructure measures at our fully integrated sites in Burghausen and Nünchritz.