Astor announces agreement to acquire remaining 50% of Rheochem joint venture.RALEIGH, N.C.--(BUSINESS WIRE)--April 11, 1997--Astor Holdings II, Inc. (Astor or the Company) announced today that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Astor Corporation, has signed a nonbinding letter of intent to acquire the 50% joint venture interest in Rheochem Technologies, Inc. (Rheochem) that Astor does not already own. Rheochem is a Columbia, Missouri based manufacturer of a range of lubricant products used as additives in polyvinyl chloride polyvinyl chloride (PVC), thermoplastic that is a polymer of vinyl chloride. Resins of polyvinyl chloride are hard, but with the addition of plasticizers a flexible, elastic plastic can be made. (PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. ) compounding. Rheochem has developed advanced wax-based lubricants which improve processing of PVC pipe and vinyl building products. These products have allowed Rheochem to capture a large share of what the Company believes to be an expanding PVC lubricants market. The Company envisions that Rheochem will become one of the operating units of Astor Corporation and continue under the leadership of Thomas C. Pedersen, the founder of Rheochem, who has wide experience in PVC compounding technology. Rheochem recorded net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $34.3 million for the year ended December 31, 1996. Boyd D. Wainscott, Chairman and Chief Executive Officer, remarked, "As a full member of the Astor team, Rheochem will add new impetus in our drive to expand our diverse line of high-margin products for niche markets and to develop new technologies." The acquisition is subject to negotiation of a definitive agreement and to customary closing conditions. Astor expects to complete the acquisition by April 30, 1997. Astor also said that, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis for the acquisition of ADCO ADCO Abu Dhabi Company for Onshore Oil Operations ADCO Alcohol and Drug Control Officer ADCO Air Defense Control Center ADCO Alcohol & Drug Control Office ADCO Air Defense Communications Office ADCO Air Defense Coordination Organization Technologies, Inc. (ADCO) and prior transactions, revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the twelve months ended December 31, 1996 were $228.8 million and $30.1 million, respectively, an increase of 11.2% and 16.7% from the pro forma results of $205.8 million and $25.8 million for the twelve months ended March 31, 1996. Astor reports on the basis of a fiscal year ending March 31. Astor is a leading global developer, producer and marketer of specialty waxes, adhesives and sealants, servicing numerous specialty niches with a wide variety of value-added products. CONTACT: Susan L. Bailey (Media Contact) 919/846-8011 John F. Gottshall/Kevin M. Gay (Analyst Contact) 919/846-8011 |
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