Arch Chemicals Completes Biocides Acquisition
Arch Chemicals, Inc. reported that it has completed its previously announced acquisition of the biocides business of Avecia, which is comprised of a Pool & Spa business and a Protection & Hygiene business. The two businesses had combined sales of approximately $137 million in 2003.
"We are very pleased to add these businesses to our Treatment Products segment. They will greatly complement Arch's existing capabilities in water treatment and industrial biocides and present us with many exciting synergies," said Arch Chemicals' Chairman, President and CEO Michael E. Campbell. "The acquisition of the Pool & Spa business will rapidly accelerate our participation in the specialty pool and spa dealer channel while the Protection & Hygiene business provides opportunities for Arch to expand our product offerings in the industrial and consumer segments of the biocides market," Mr. Campbell added.
Included in the acquisition are manufacturing centers located in the United Kingdom, with additional toll manufacturing and customer support capabilities worldwide.
The total purchase price is approximately $215 million, consisting of $200 million in cash and 669,750 shares of Arch common stock. The purchase price is subject to a post-closing working capital adjustment and a $5 million contingent payment based upon future performance of the acquired businesses. The acquisition is expected to be cash and earnings accretive in 2004, excluding synergies.
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