Alcoa Completes Sale of Specialty Chemicals Business To Rhone Capital and Teachers' Merchant Bank for $342 Million.Business Editors PITTSBURGH--(BUSINESS WIRE)--Feb. 27, 2004 Alcoa Inc. (NYSE NYSE See: New York Stock Exchange :AA) announced today that Alcoa World Alumina & Chemicals (AWAC), a global alliance between Alumina Limited Alumina Limited ASX: AWC NYSE: AWC is a public company listed on the Australian and New York Stock Exchanges. It was formed in 2003 in a demerger from Western Mining Corporation, and is one of the largest companies on the ASX. (40%) and Alcoa (60%), has completed the sale of Alcoa Specialty Chemicals to two private equity firms led by Rhone Capital LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control for approximately $342 million which includes the assumption of debt and other unfunded obligations. This sale is part of the divestiture program announced by Alcoa in January 2003. The Specialty Chemicals business consists of 11 operating facilities in six countries around the world. In addition to facilities in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Japan, and an equity stake in Australia, Specialty Chemicals operates production and processing centers in China and India. The business' products are sold into a wide range of end markets including the steel, cement, petrochemical, plastics, automotive, non-ferrous metal production, ceramics, carpet manufacturing and electronics industries. Specialty Chemicals has annual revenues of approximately $360 million, and employs approximately 800 people. Under the new ownership, the business will be renamed Almatis and will continue to leverage its leading global market position and excellent growth opportunities. Alcoa is the world's leading producer of primary aluminum, fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: aluminum and alumina, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses as a single solution to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) aluminum foil Noun 1. aluminum foil - foil made of aluminum aluminium foil, tin foil foil - a piece of thin and flexible sheet metal; "the photographic film was wrapped in foil" , Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding Wikipedia is not the place for advertisement or self-advertising. Vinyl siding, first introduced to the exterior cladding market in the late 1950s, is an alternative to aluminum siding, fiber cement siding, and timber siding. , closures, precision castings, and electrical distribution systems for cars and trucks. The company has 120,000 employees in 41 countries. For more information go to www.alcoa.com The investment in Almatis will come from Rhone Partners II L.P., Rhone's second private equity fund and Teachers' Merchant Bank, the private equity arm of the Ontario Teachers' Pension Plan The Ontario Teachers' Pension Plan (OTPP), commonly referred to as Teachers', is the organization responsible for administering pensions for public school teachers of Ontario. The OTPP also invests the plan's pension fund. . About Rhone Rhone Capital LLC was founded in 1997 and has offices in London, Paris and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Rhone Capital, a closely-held firm, specializes in mid-market leveraged buyouts, recapitalizations and partnerships with particular focus on European and trans-Atlantic investments. Rhone invests in partnership with management and currently has investments in a diversified portfolio of companies including American Remanufacturers, Inc., a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. supplier of re-manufactured automotive parts; De Dietrich S.A., a diversified manufacturer of chemical processing and heating equipment; Fraikin Groupe, the largest truck leasing company in France; Home Fragrance Holdings, Inc., the largest North American manufacturer of private-label scented candles; Terphane Ltda., a leading producer of polyester film for the consumer packaging market; and Primus International Inc., a leading manufacturer of aerospace parts. About Teachers' Merchant Bank Teachers' Merchant Bank is the private equity arm of the C$75 billion Ontario Teachers' Pension Plan. With a portfolio of over C$4.5 billion, Teachers' Merchant Bank is one of Canada's largest private investors presently working with more than 100 companies around the world to create value by providing long-term flexible capital. UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Investment Bank served as exclusive financial advisor to Alcoa in connection with this transaction. Contacts for Almatis, Ontario Teachers' and Rhone are: Almatis - Gabrielle Drees +49.69.95.732.41.44 Ontario Teachers' - Lee Fullerton +1.416.730.5347 Rhone - Andrew Sweet +44.20.7761.1100 Forward Looking Statement Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of Alcoa to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the company's inability to complete feasibility studies, unexpected changes in global economic, business, competitive, market and regulatory factors, and the other risk factors summarized in Alcoa's 2002 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Report and other SEC reports. |
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