GRACE TO SELL ORGANIC CHEMICALS BUSINESS
GRACE TO SELL ORGANIC CHEMICALS BUSINESS BOCA RATON, Fla., June 8 /PRNewswire/ -- W. R. Grace & Co.
(NYSE: GRA) today announced that a subsidiary has agreed in principle to sell Grace's organic chemicals business and related assets to a new company organized by Vestar Capital Partners, a private investment firm based in New York City. The new company will be headed by Edward G. Najjar, the current president of Grace's Organic Chemicals Division.
The more than $100 million transaction is subject to approval of the Board of Directors of Grace, negotiation and execution of definitive agreements, the transfer of permits at the federal, state and local levels, and various other conditions. This complex transaction is expected to take three to four months to close. J. Peter Grace, chairman and chief executive officer, said: "While Organic Chemicals enjoys good profitability and a strong future, the sale is part of the new Grace worldwide strategic plan to focus growth and direction in six core business areas. By divesting non-core businesses, Grace will reduce debt load and redeploy assets to core strategic businesses." Grace's Organic Chemicals Division, headquartered in Lexington, Mass., produces chemical intermediates used in cosmetic and personal care products, soaps and detergents, pharmaceuticals, water treatment and other specialty applications. Organic Chemicals has five major facilities operating throughout the U.S. and a new chemical intermediates plant is under construction at Lima, Ohio. A chemical intermediates facility located in Teesside, England is also to be included in the transaction, but the unit's nitroparaffins business is to be excluded. Grace is the world's largest specialty chemicals company with a leadership position in health care. Vestar Capital Partners, Inc. is a private investment firm headquartered in New York City. Since inception in 1988, Vestar Capital has organized and invested in nine management buyouts for a total value of approximately $850 million. -0- 6/8/92 /CONTACT: Chuck Suits of Grace, 407-362-2600 or 800-GRACE99; or Dan O'Connell of Vestar Capital, 212-949-6003/ (GRA) CO: W. R. Grace & Co.; Vestar Capital Partners, Inc. ST: Florida IN: CHM SU:
JJ-JB -- FL003 -- 7820 06/08/92 10:31 EDT
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|Date:||Jun 8, 1992|
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