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Rockwood Holdings, Inc. Completes Acquisition of Süd-Chemie’s Rheological Additives and Carbonless Developers Businesses

Published on 2006-01-19. Author : SpecialChem

Princeton, NJ USA -- Rockwood Holdings, Inc. (NYSE: ROC) ("Rockwood") has completed the acquisition of the rheological additives and carbonless developers businesses of Süd-Chemie AG, Munich, Germany, following approval by European Union antitrust authorities. With this acquisition, Rockwood's Clay Additives business unit is now positioned as one of the world's premier suppliers of organoclay rheological additives.

Seifi Ghasemi, Rockwood's Chairman and Chief Executive Officer, said, “The Süd-Chemie businesses enhance our performance additives capabilities, providing us with additional resources to serve our customers throughout the world with a comprehensive range of products, technologies and services."

The Süd-Chemie rheological additives business produces materials used in the coatings, ink and personal care industries to improve the flow properties of finished products. Rockwood has acquired the technology of Süd-Chemie’s Tixogel® organoclays, Optiflo® associative thickeners and Optigel® activated clays, as well as production facilities in Moosburg, Bavaria, Germany and Louisville, Kentucky. Rockwood also has purchased Süd-Chemie's Copisil® clay product line, which is used in the manufacture of carbonless paper. Rockwood plans to transfer production for the Copisil line to its manufacturing facility in Widnes, United Kingdom (U.K.). Vernon Sumner, president of Rockwood's Clay Additives business, will manage the newly acquired businesses.

"We are pleased to welcome a very talented group of 125 employees to our worldwide performance additives organization," said Sumner. "Our combined resources will enable us to provide customers in many of our markets with a stronger product offering, particularly in water-based coatings."

The terms of the acquisition were not disclosed. Sales generated by the Süd-Chemie businesses are approximately $50 million on an annual basis. The purchase price was financed by cash flow from operations.

The Süd-Chemie businesses will be incorporated into Rockwood's Clay Additives business unit, which is part of its Performance Additives segment and includes Southern Clay Products, Inc., Gonzales, Texas and Rockwood Additives Limited, Widnes, U.K.

Rockwood Holdings, Inc. (NYSE: ROC) is the ultimate parent company of Rockwood Specialties Group, Inc., a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 10,300 people and net revenue of approximately $2.9 billion in 2004 on a pro forma basis. The company focuses on global niche segments of the specialty chemicals and advanced materials markets, including specialty chemicals, performance additives, titanium dioxide pigments, advanced ceramics, custom synthesis, specialty compounds and electronics.

The information set forth in this press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc., its subsidiaries and affiliates ("Rockwood"). Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "predicts" and variations of such words or expressions are intended to identify forward-looking statements. Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. "Forward-looking statements" consist of all non-historical information, including the statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood's forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood's securities filings with the Securities and Exchange Commission, including its registration statement on Form S-1. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Source: Rockwood Holdings, Inc


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