GRACE PROCEEDS WITH SALE OF GRACE ENERGY
GRACE PROCEEDS WITH SALE OF GRACE ENERGY BOCA RATON, Fla., July 30 /PRNewswire/ -- W. R. Grace & Co.
(NYSE: GRA) announced today that it has commenced efforts to sell the components of its Dallas-based Grace Energy Corporation (NYSE: GEG) subsidiary and that it has retained the investment banking services of First Boston, Kidder Peabody, Merrill Lynch and Smith Barney to assist it in completing the divestitures at the earliest possible date.
Grace Energy consists of Grace Drilling Company, headquartered in Dallas, which has the largest drilling rig fleet in the world with 168 rigs located in 17 states, including Alaska; Grace Offshore Company, a leading provider of offshore drilling, workover and well completion services in the Gulf of Mexico, based in New Orleans; Homco International, Inc., a Houston-based oil field service firm; Grace Petroleum Corporation, an oil and gas exploration and production business, based in Oklahoma City; and Support Terminal Services, Inc., one of the largest independent specialized liquid storage companies in the U.S., also headquartered in Dallas. A Grace spokesman said that Grace has decided to divest its Grace Energy businesses as individual pieces, rather than attempting to sell Grace Energy as a whole because it believes this will facilitate the divestment process. "We've had success with this kind of approach in the past and will pursue these sales with both domestic and foreign buyers," the Grace spokesman said. First Boston will assist Grace in selling Grace Drilling and Homco, Merrill Lynch for Grace Petroleum, Kidder Peabody for ST Services and Smith Barney for Grace Offshore. W. R. Grace & Co. recently completed the purchase of the 4,070,000 publicly held shares of Grace Energy at $19 per share to achieve the flexibility needed to exit the energy business, which it previously identified as not strategic to Grace's long-term future. Colowyo Coal Company, a Grace Energy subsidiary that operates the largest low-sulfur coal mine in Colorado, will be retained by Grace for the present. Last year, Grace Energy purchased the 50 percent interest in Colowyo previously held by M. A. Hanna Company. Grace Energy had sales and revenues in 1991 of nearly $500 million. W. R. Grace & Co. is the world's largest specialty chemicals company with a leadership position in health care. -0- 7/30/92 /CONTACT: Chuck Suits of W.R. Grace, 407-362-2600 or 800-GRACE99/ (GRA GEG) CO: W.R. Grace & Co.; Grace Energy Corp. ST: Florida IN: CHM UTI SU:
JB-AW -- FL002 -- 4986 07/30/92 10:06 EDT
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|Date:||Jul 30, 1992|
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