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VALSPAR PLANS TO SPIN OFF MCWHORTER RESIN UNIT TO SHAREHOLDERS AFTER MCWHORTER ACQUIRES CARGILL'S RESIN BUSINESS

 MINNEAPOLIS, Oct. 22 /PRNewswire/ -- The Valspar Corporation (AMEX: VAL), a major coatings company, announced today that it has reached an agreement with the Federal Trade Commission allowing McWhorter, Inc., to proceed with the acquisition of the Resin Products Division of Cargill, Incorporated. Under the terms of the agreement, Valspar will form two resin companies and will spin off the larger of these companies to its shareholders. The spun-off entity will become a new, publicly traded company, independent from Valspar. It will be called McWhorter, Inc., and have sales of $265 million, assets of about $135 million and approximately 575 employees. This company will be comprised of all the Cargill resin assets and business located in Carpentersville, Ill.; Lynwood, Calif.; Forest Park, Ga.; Ennis, Texas; and Chicago Heights, Ill.; plus McWhorter's assets and business located in Carpentersville, Philadelphia, and Portland, Ore.
 McWhorter's nonexecutive chairman will be D. George Harris. Harris has been a director of Valspar since 1987 and will discontinue that directorship to chair McWhorter's board. Harris is chairman and CEO of Harris Chemical Group, Inc., which is comprised of North American Chemical Company, North American Salt Company and Great Salt Lake Minerals. He has previously served as president of SCM Corporation, SCM Chemicals and the U.S. subsidiary of Rhone-Poulenc. McWhorter's president and CEO will be John Stevenson. Stevenson has been an employee of Valspar for 25 years. His most recent responsibility has been vice president, special products and corporate administration. Stevenson's administrative responsibilities have included direction of Valspar's acquisition consolidation activities.
 Valspar will continue in the resin business with its facilities in Kankakee, Ill.; Rockford, Ill.; Los Angeles, and Garland, Texas, and will remain an important supplier of resins and emulsions for the merchant market, as well as an internal supplier of proprietary and specialty resins for Valspar. Adjusted for the spin-off, Valspar's total sales will be $650 million, with assets of about $300 million and approximately 2,400 employees.
 In announcing the planned McWhorter resin spin-off, C. Angus Wurtele, Valspar's chairman, stated, "It presents a unique opportunity to create a leading resin company with significant growth potential while enhancing value for Valspar's shareholders. I believe that this spin-off is in the best interests of shareholders, customers, employees and all of our other constituencies."
 Valspar has filed a request with the Internal Revenue Service for a tax-free ruling concerning its proposed spin-off. Upon receipt of the ruling, McWhorter will acquire the assets of Cargill's Resin Products Division for approximately $90 million. Cargill's resin business generated revenues of $200 million for the year ended May 31, 1993. Subsequent to the completion of the acquisition, Valspar plans to spin off to its shareholders, on a pro-rata tax-free basis, all of the stock of McWhorter and thereby divest the Cargill resin assets and McWhorter's resin business and facilities at Carpentersville, Philadelphia and Portland. It is anticipated that the distribution of McWhorter's stock will be completed by April or May of next year.
 -0- 10/22/93
 /CONTACT: Paul C. Reyelts, vice president of finance of Valspar, 612-375-7702/
 (VAL)


CO: Valspar Corporation; Cargill Incorporated; McWhorter, Inc. ST: Minnesota IN: CHM SU: TNM

CP-DS -- MN004 -- 5565 10/22/93 07:58 EDT
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Publication:PR Newswire
Date:Oct 22, 1993
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