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Apollo Management, L.P. to Purchase the Plastics and Adhesives Business of Tyco International Ltd.

Published on 2005-12-21. Author : SpecialChem

NEW YORK -- Apollo Management, L.P. announced that it has entered into a definitive agreement to purchase the Plastics and Adhesives business of Tyco International Ltd. ("TP&A" or the "Company") for $975 million in cash. The transaction is subject to regulatory approval and other customary closing conditions and is expected to be completed in early calendar 2006.

"We are excited to be purchasing Tyco's Plastics and Adhesives business, a franchise asset with leadership positions in a diverse group of attractive end markets," said Joshua Harris, a founding partner at Apollo Management. "We view the company as an excellent platform and look forward to the opportunity to invest alongside a strong management team with whom we will work to grow the business and realize the full potential of the Company's leading market positions."

Terry Sutter, the current president of Tyco's Plastics and Adhesives business segment will become Chief Executive Officer of the Company upon closing and will lead the existing management team. "This is a tremendous opportunity for our business and employees to have an opportunity to partner with Apollo in building a world scale standalone Plastics and Adhesives engineered materials business," said Terry Sutter. "Over the last two years, we have significantly enhanced our customer satisfaction through better supply chain and key account management. We look forward to the many opportunities that lie ahead for our employees, customers and new shareholders."

The Company, headquartered in Princeton, New Jersey, is a leading manufacturer of plastic films, specialty adhesive and tape products and laminated and coated products. The Company's extensive portfolio of products is used in a diverse set of end markets, including the retail, building and construction, agriculture, institutional, packaging, medical, industrial, automotive, military, mining, and oil, gas and water supply sectors. Key brands include Ruffies® and Rhino-X® trash bags; Film-Gard® plastic sheeting; Nashua® tapes, Raychem® heat-shrinkable coatings; Polyken® pipeline coatings; Scrollware® plastics dinnerware; Thermo-Ply® and Energy-Brace® wall sheathing; as well as R-Wrap® and Barricade® housewraps. The business segment being sold employs approximately 7,100 people and operates from 43 manufacturing facilities, primarily in North America.

Banc of America Securities LLC acted as financial advisor to Apollo in connection with the transaction. Wachtell, Lipton, Rosen, & Katz acted as legal advisor to Apollo in connection with the transaction. Apollo has obtained commitments for financing the acquisition, subject to the satisfaction of customary conditions. The financing commitments are provided by Bank of America, N.A., Credit Suisse, Merrill Lynch Capital Corporation and Morgan Stanley Senior Funding, Inc.

About Apollo Management, L.P.

Apollo Management, L.P., founded in 1990, is among the most active and successful private investments firms in the United States in terms of both number of investment transactions completed and aggregate dollars invested. Since its inception, Apollo has managed the investment of an aggregate of approximately $13 billion in equity capital in a wide variety of industries, both domestically and internationally, and is currently managing Apollo Investment Fund VI, L.P., its most recent fund with committed capital of $10.1 billion.

Source: Apollo Management, L.P.


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