Grace Completes Acquisition of Albemarle Polyolefin Catalysts Business
April 03 2018 - 4:15PM
W. R. Grace & Co. (NYSE:GRA) today completed the $416 million
acquisition of the Polyolefin Catalysts business of Albemarle
Corporation (NYSE:ALB).
The acquired business primarily develops and manufactures
proprietary and custom-manufactured single-site catalysts as well
as metallocenes and activators used in the production of plastic
resins. The transaction also includes a comprehensive series of
highly optimized Ziegler-Natta catalysts for polyethylene
production.
The acquisition includes production plants in Baton Rouge, LA
and Yeosu, South Korea; R&D and pilot plant capabilities; and
an extensive portfolio of intellectual property.
Over the last five years, Grace has invested well over $1
billion to create a leading position in polyolefin catalysts and
process technology. The company now has the broadest portfolio of
polyolefin catalyst technologies of any catalysts producer.
“This acquisition significantly enhances our position in the
fastest growing polyethylene segment and fills out our polyolefin
catalysts portfolio,” said Grace Chairman and Chief Executive
Officer Fred Festa. “With the rising demand for sophisticated
resins, Grace is committed to growing this business by investing in
single-site catalysts technologies to fully support our global
polyethylene manufacturing customers.”
“We are very pleased to welcome the approximately 175 employees,
including commercial, R&D, and operating professionals, who run
this business today,” said Al Beninati, President of Grace’s
Specialty Catalysts business. “The combination of talent,
technology, and manufacturing capabilities strengthens our team and
aligns directly with our strategy to provide our customers the most
advanced technologies in the market today.”
Grace addressed the financial impact of the acquisition during
an investor call on Dec. 15, 2017, the transcript of which is
available on the company’s website under, “Investors.”
About Grace
Built on talent, technology, and trust, Grace is a leading
global supplier of catalysts and engineered materials. The
company’s two industry-leading business segments—Catalysts
Technologies and Materials Technologies—provide innovative
products, technologies, and services that enhance the products and
processes of our customers around the world. With approximately
3,700 employees, Grace operates and/or sells to customers in over
60 countries. More information about Grace is available at
grace.com.
Forward-Looking Statements
This announcement contains forward-looking statements, that is,
information related to future, not past, events. Such statements
generally include the words “believes,” “plans,” “intends,”
“targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,”
“continues,” or similar expressions. Forward-looking statements
include, without limitation, expected financial positions; results
of operations; cash flows; financing plans; business strategy;
operating plans; capital and other expenditures; competitive
positions; growth opportunities; benefits from new technology and
cost reduction initiatives; and markets for securities. For these
statements, Grace claims the protections of the safe harbor for
forward-looking statements contained in Section 27A of the
Securities Act and Section 21E of the Exchange Act. Like other
businesses, Grace is subject to risks and uncertainties that could
cause its actual results to differ materially from its projections
or that could cause other forward-looking statements to prove
incorrect. Factors that could cause actual results to differ
materially from those contained in the forward-looking statements
include, without limitation: risks related to foreign operations,
especially in emerging regions; the cost and availability of raw
materials, energy and transportation; the effectiveness of its
research and development and growth investments; acquisitions and
divestitures of assets and businesses; developments affecting
Grace’s outstanding indebtedness; developments affecting Grace's
pension obligations; its legal and environmental proceedings;
environmental compliance costs; uncertainties related to Grace’s
ability to realize the anticipated benefits of the separation
transaction; the inability to establish or maintain certain
business relationships and to hire or retain key personnel; natural
disasters such as storms and floods; changes in tax laws and
regulations; and those additional factors set forth in Grace's most
recent Annual Report on Form 10-K, quarterly report on Form 10-Q
and current reports on Form 8-K, which have been filed with the
Securities and Exchange Commission and are readily available on the
Internet at www.sec.gov. Reported results should not be considered
as indications of future performance. Readers are cautioned not to
place undue reliance on Grace's projections and forward-looking
statements, which speak only as of the dates those projections and
statements are made. Grace undertakes no obligation to release
publicly any revision to the projections and forward-looking
statements contained in this announcement, or to update them to
reflect events or circumstances occurring after the date of this
announcement.
Media RelationsRich
BadmingtonT +1
410.531.4370rich.badmington@grace.com
Investor RelationsTania
AlmondT +1
410.531.4590tania.almond@grace.com
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