WITCO PRESENTS PLANS FOR SCHERING ACQUISITION TO FINANCIAL COMMUNITY RESPONSE: 'WITCO IN 21ST CENTURY'
WITCO PRESENTS PLANS FOR SCHERING ACQUISITION TO FINANCIAL COMMUNITY RESPONSE: 'WITCO IN 21ST CENTURY' NEW YORK, Sept. 1 /PRNewswire/ -- At a luncheon presentation to nearly 70 members of the financial community, Witco Corporation (NYSE: WIT) held its quarterly analysts meeting and discussed its plans for the nearly completed acquisition of two divisions of Schering AG. "This is a significant achievement," said Witco Chairman and Chief Executive Officer William R. Toller at the meeting held at The Drake Hotel in New York City. "With this acquisition we've obtained a widespread global presence and sales building from our present $1.6 billion to nearly $2.2 billion." The acquisition for DM 660 million in cash (approximately $440 million) includes the Industrial Chemicals and Natural Substances divisions for Schering AG (Berlin) with 10 plants in seven countries; two in Germany, three in the United States, and one each in France, Italy, Spain, the United Kingdom and Ecuador. Executive Vice President William Mahoney stated, "This is a match tailor-made for Witco. The product lines we are purchasing dovetail with our existing businesses and areas of expertise such as oleochemicals, surfactants, and organo-metallic compounds. The plants and research facilities we are acquiring are top-notch and operated by highly trained personnel." Prudential Bache chemical analyst Len Bogner was enthusiastic after the presentation. "This acquisition brings Witco into the 21st century. At a time when most companies are shrinking, Witco appears ready to increase in size and global scope." Tom Lanza, of Benefit Capital Management Corporation, and also a lone-time follower of Witco, offered, "This acquisition is very positive for Witco's future growth as it makes the company dominant in a number of product lines in Europe. The investment community tends to be myopic and too interested in short-run financial results. I'm feeling positive about Witco's plan." Witco's chief financial officer, Michael Fullwood, said at the presentation that many financing alternatives were being examined. "We feel that with our history of balance sheet strength, we are well positioned to make the most advantageous financing arrangements possible." Witco Corporation is a worldwide manufacturer of specialty chemical and petroleum products and engineered materials with annual sales of more than $1.6 billion. -0- 9/1/92 /CONTACT: C.R. Soderlind, group vice president, 212-605-3813, or S.L. Levy, manager public relations, 212-605-3815, both of Witco/ (WIT) CO: Witco Corporation; Schering AG ST: New York IN: CHM SU: TNM
TS-LR -- NY028 -- 5359 09/01/92 10:49 EDT
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|Date:||Sep 1, 1992|
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