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Rockwood Press Release
Rockwood Holdings, Inc. Agrees to Acquire Süd-Chemie’s
Rheological Additives and Carbonless Developers Businesses
Princeton, NJ USA (October 19, 2005) - Rockwood Holdings, Inc. (NYSE: ROC) (“Rockwood”) has reached an agreement to acquire the rheological additives and carbonless developers businesses of Süd-Chemie AG, Munich, Germany. Sales generated by the Süd-Chemie businesses are approximately $50 million on an annual basis. The transaction is subject to approval by the European Union antitrust authorities. Terms of the acquisition are not being disclosed. The purchase price will be financed by cash flow from operations.
Seifi Ghasemi, Rockwood’s Chairman and Chief Executive Officer, said, “We are very excited about the future of our global Clay Additives business, which is part of our Performance Additives segment. This acquisition strengthens our market position by providing us with additional customized products and solutions that will enable us to compete more effectively.”
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 will acquire the technology to Süd-Chemie's Tixogel® organoclays, Optiflo® associative thickeners, and Optigel® activated clays, and production facilities in Moosburg, Bavaria, Germany and Louisville, Kentucky. Rockwood will also acquire Süd-Chemie's Copisil® clay product line, which is used in the manufacture of carbonless paper. Rockwood expects to transfer production for the Copisil® line to its manufacturing facility in Widnes, United Kingdom (U.K.).
Both businesses will be incorporated into Rockwood’s Clay Additives business unit, which is part of its Performance Additives segment, which includes Southern Clay Products, Inc., Gonzales, Texas and Rockwood Additives Limited, Widnes, U.K.
According to Vernon Sumner, President of Rockwood’s Clay Additives business unit, “This acquisition ideally compliments our existing clay additives business and will allow us to better serve our customers with a broader product line, enhanced technical resources and increased production capability.”
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 10,200 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. For more information on Rockwood, please visit www.rocksp.com.
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.
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