IVAX ANNOUNCES PROPOSED ACQUISITION OF THE INDUSTRIAL AND INSTITUTIONAL CLEANING PRODUCTS BUSINESS OF ELF ATOCHEM NORTH AMERICA, INC.
MIAMI, April 26 /PRNewswire/ -- IVAX Corporation (AMEX: IVX) announced today that it signed an agreement with Elf Atochem North America, Inc. to acquire certain assets and liabilities of Elf Atochem's janitorial and textiles chemicals businesses in the United States and Canada (the "business"). The purchase price will be $58 million, payable $13 million in cash and $45 million in shares of IVAX' common stock, subject to certain adjustments as provided in the acquisition agreement. The business is involved in the manufacture and sale of products in four specialty chemical areas: industrial and institutional cleaning and maintenance products; detergents and supplies for institutional laundries; textile finishing chemicals for blue jeans and denim apparel; and cleaning and disinfectant chemicals for the dairy and food industry. The business includes the right to sell products to industrial and institutional customers under the trademarks Franklin(R), Purex(R), Brillo(R), Loren(R), and Kurly Kate(R), among others. In 1992, the business had total sales of approximately $64 million. The assets to be acquired include the inventories and receivables relating to the business, two manufacturing plants, and certain trademarks and patents. The liabilities to be assumed consist generally of trade payables and certain agreements relating to the business. Commenting on the proposed transaction, Phillip Frost, M.D., the chairman and chief executive officer of IVAX stated, "This acquisition increases the size and competitiveness of our specialty chemicals company, IVAX Industries, giving us greater flexibility with respect to that business, including the possibility of making IVAX Industries a separate public company. The combination of this acquisition and the recent addition of Gerald M. Saluti, Ph.D., as president of IVAX Industries gives IVAX the management and resources necessary to make IVAX Industries an important force in the specialty chemicals business." Dr. Saluti stated, "Elf Atochem's four business areas fit very well with two of IVAX Industries' divisions: the Textile Products Division and the Masury-Columbia cleaning chemicals division. Elf Atochem's denim and laundry businesses will expand our role in textiles worldwide, and combined with our research and development focus on environmentally improved materials, provide broader markets and uses for our products and services. Elf Atochem's Purex cleaning chemicals business and dairy and food cleaning products business, together with Masury-Columbia, give us a much broader product and service capability and stronger distribution, and will make us an industry leader in environmentally improved cleaning products and services in North America." Dr. Saluti was previously employed by American Cyanamid for over 20 years, the last five as president of its Polymer Products Division. Consummation of the acquisition is subject to, among other things, the receipt of required regulatory approvals and the approval of the respective boards of directors of IVAX and Elf Atochem. IVAX Corporation is a holding company with subsidiaries involved in specialty chemicals, pharmaceuticals and medical diagnostics. IVAX' principal subsidiaries include Baker Norton Pharmaceuticals, Inc., a developer and marketer of unique brand name pharmaceuticals; Norton Healthcare Limited, a leading manufacturer and marketer of generic pharmaceuticals in the United Kingdom, Ireland and other countries; H.N. Norton Co., a manufacturer of generic pharmaceuticals in the United States; Goldline Laboratories, Inc., a national marketer of generic prescription and over-the-counter pharmaceuticals in the United States; Baker Cummins Dermatologicals, Inc., a dermatological products company; Flori Roberts, Inc., a skin care and cosmetics company; DVM Pharmaceuticals Inc., a veterinary products company; Baker Cummins, Inc., a marketer of brand name pharmaceuticals in Canada; Diamedix Corporation, a medical diagnostics company; Delta Biologicals S.r.l, a marketer of medical diagnostic tests and instruments in Italy; and IVAX Industries, Inc., a chemical specialties business. -0- 4/26/93 /CONTACT: Richard C. Pfenniger Jr. , senior vice president-legal affairs of IVAX Corporation, 305-590-2309/ (IVX)
CO: IVAX Corporation; Elf Atochem North America, Inc. ST: Florida IN: MTC SU: TNM
AW-JB -- FL007 -- 0473 04/26/93 09:04 EDT
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|Date:||Apr 26, 1993|
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