Wesel, April 14, 2003
ALTANA Acquires Electrical Insulation Business from Schenectady International
|Strategic Strengthening of ALTANA Chemie|
Bad Homburg, April 14, 2003 - ALTANA AG, Bad Homburg, Germany, and Schenectady International, Inc. (SII), USA, announced today that ALTANA Chemie will acquire SII's global electrical insulation business. The acquisition is planned to be completed by June 30, 2003 and is subject to approval by the regulatory authorities. Financial details about the agreement were not released.
ALTANA Chemie will acquire Schenectady International's global businesses in wire enamels, which are products used to insulate magnet wires; and impregnating resins, insulators of electronic components like electric motors or transformers. During 2002, SII achieved sales in these lines of business of about $90 million. As part of this transaction, ALTANA Chemie will obtain 100% of the shares in Schenectady Europe GmbH, Hamburg, as well as 83% of the shares in Schenectady Beck India, a company listed on the Indian stock exchange. In addition, ALTANA Chemie will acquire Schenectady International's electrical insulation business in the United States, Great Britain, South Africa, Brazil, Mexico, Canada, and Australia and integrate it into existing companies of the Electrical Insulation business unit of ALTANA Chemie in the United States, Europe, and China. Approximately 300 employees as well as three production locations in Germany and India will be transferred to ALTANA Chemie.
"This acquisition will strengthen our specialty chemicals business in the restructured Electrical Insulation business unit and represents an important step in our efforts to expand on our existing position as global leader", explains Dr. Matthias L. Wolfgruber, member of the ALTANA management board and CEO of ALTANA Chemie AG. "The purchase of Schenectady International's electrical insulation business will improve our presence in all major markets worldwide. The new business is an ideal complement to our innovative product portfolio and technical capabilities while further improving our ability to provide effective customer service in the electrical and electronics industry."Wallace A. Graham, Chairman of the Board and CEO of SII:
"This transaction allows SII to focus its attention on our chemical, performance resin, and electronic chemical businesses."
The transaction follows ALTANA Chemie's strategy of growing both internally and by means of selected acquisitions. The acquisition of SII's electrical insulation business will result in a short-term positive earnings contribution and will not dilute ALTANA Chemie's already attractive returns.
Schenectady International Inc.
Schenectady International, Inc. (www.siigroup.com) is a private, family-owned company founded in 1906 with headquarters in Schenectady, New York. It is the world leader in the production of alkylphenols, and a leading global producer of performance resins. SII will continue supplying the global marketplace for these products from its 21 locations in 14 countries.
This press release contains forward-looking statements, i.e., current estimates or expectations of future events or future results. The forward-looking statements appearing in this press release include the successful completion of the acquisition. These statements are based on beliefs of ALTANA's management as well as assumptions made by and information currently available to ALTANA. Many factors that ALTANA is unable to predict with accuracy could cause ALTANA's actual results, performance or achievements to be materially different from those that may be expressed or implied by such forward-looking statements. These factors include the necessary approval of the competent antitrust authorities if required, ALTANA's ability to maintain close ties with its chemicals customers, the business cycles experienced by ALTANA's chemicals customers and the prices of the raw materials used in ALTANA's chemicals business.
Forward-looking statements speak only as of the date they are made. ALTANA does not intend, and does not assume any obligation, to update forward-looking statements to reflect facts, circumstances or events that have occurred or changed after such statements have been made.
You can find this press release in the Internet under www.altana.com
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