ETHYL CORPORATION ANNOUNCES THAT ITS SUBSIDIARY, ETHYL PETROLEUM ADDITIVES, INC., COMPLETES ACQUISITION OF AMOCO PETROLEUM ADDITIVES CO.
ETHYL CORPORATION ANNOUNCES THAT ITS SUBSIDIARY, ETHYL PETROLEUM ADDITIVES, INC., COMPLETES ACQUISITION OF AMOCO PETROLEUM ADDITIVES CO. RICHMOND, Va., June 26 /PRNewswire/ -- Ethyl Corporation (NYSE: EY) today announced that its subsidiary, Ethyl Petroleum Additives, Inc., completed the acquisition of the petroleum additives business of Amoco Petroleum Additives Company (APAC). A purchase agreement had been signed by Ethyl and Amoco on April 23. Ethyl said it purchased assets, which include technology and a Natchez, Miss., plant in addition to accounts receivable and inventories. The total value of the transaction is more than $100 million, which will be financed with additional borrowing under Ethyl's revolving credit agreement. The acquisition is expected to add about $250 million in annual sales to Ethyl's Petroleum Additives Division, which had 1991 sales of about $700 million. Ethyl anticipates that some 130 APAC employees, including about 60 at the Natchez plant, will join Ethyl. Management, marketing and administrative employees located mainly at APAC's Clayton, Mo., headquarters and APAC R&D employees based in Naperville, Ill., will relocate to Richmond or St. Louis, Mo. Under a separate sales agreement, Amoco will supply products to Ethyl from its Wood River, Ill., plant. "This strategic acquisition underscores Ethyl's firm commitment to the petroleum additives business. It strengthens our technology base and better enables us to serve our combined customer base," said Bruce C. Gottwald, Ethyl's president and chief executive officer. A Fortune-500 company headquartered in Richmond, Va., Ethyl Corporation is a worldwide producer and marketer of value-added performance chemicals worldwide for the petroleum and plastics industries. Ethyl also makes high-technology chemical intermediates for detergents, polymers, electronics, agricultural chemicals and pharmaceuticals. In addition, Ethyl owns First Colony Life Insurance Company. Ethyl's total revenues in 1991 were $2.6 billion. -0- 6/26/92 R /CONTACT: A. Prescott Rowe, 804-788-5413, or Robert P. Buford IV, 804-788-5494, both of Ethyl Corporation/ (EY) CO: Ethyl Corporation; Ethyl Petoleum Additives, Inc.; Amoco Petroleum Additives Company ST: Virginia IN: CHM SU: TNM
JZ -- CH006 -- 4503 06/29/92 08:25 EDT
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|Date:||Jun 29, 1992|
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