WILTON, Conn.--(BUSINESS WIRE)--Feb. 12, 2002--In a move that will launch GE into a new business segment and add $1 billion in annual sales, GE Specialty Materials, a unit of General Electric Company (NYSE:GE), today announced that it has entered into an agreement to acquire the water treatment services business of BetzDearborn from Hercules Incorporated (NYSE:HPC).
This transaction, which is subject to regulatory approval, is expected to close in spring 2002. The purchase price is $1.8 billion.
BetzDearborn is a global service company providing engineered chemical treatment of water and process systems in industrial applications. BetzDearborn is the second largest industrial water treatment service business in the world. Globally, the water treatment business segment is a $6 billion opportunity.
"BetzDearborn is a great fit for our expanding business," said William Woodburn, president and chief executive officer of GE Specialty Materials. "GE Specialty Materials is a growth platform for strong technology and service content businesses. This acquisition opens the door for GE to utilize approximately 2,000 experienced BetzDearborn sales engineers to distribute to their customers innovative products and services derived from technology used at GE Medical Systems, GE Power Systems and the GE Global Research Center. Applying GE technology from these businesses creates the opportunity to offer customers new, advanced equipment and corrosion diagnostic services. This is also a technically savvy organization which will quickly adopt GE's initiatives of Six Sigma and Digitization."
Craig Rogerson, vice president and general manager of BetzDearborn added, "We look forward to being a part of the GE team. GE Specialty Materials is a growing and exciting business. We will build on our traditional commitment to customer service, give our people opportunity for professional growth and offer new, exciting technologies to expand our sales and technical service capabilities to our customers."
BetzDearborn has its global headquarters in Trevose, Pennsylvania and is a division of Hercules Incorporated. It has offices in more than 50 countries and operations throughout the world. It has four regional centers and 25 production plants located in North America, Asia-Pacific, Europe, and Latin America. BetzDearborn is a leading provider in the engineered chemical treatment of water and process systems in industrial, commercial and institutional facilities. Annual sales are approximately $1 billion. Visit BetzDearborn online at betzdearborn.com.
The BetzDearborn business will be the fifth component in the GE Specialty Materials portfolio. The GE Specialty Materials businesses include GE Silicones, GE Specialty Chemicals, GE Superabrasives and GE Quartz.
GE Specialty Materials (GESM) is a new platform for growth within GE offering a wide range of products including fused quartz, polymer additives, silicones and industrial diamonds. GESM uses technological innovation and Six Sigma to serve customers in segments as diverse as cosmetics, semi-conductors, oil drilling, construction and telecommunications. Visit GE Specialty Materials online at gespecialtymaterials.com.
Hercules manufactures chemical specialties used in making a variety of products for home, office and industrial markets. The company's core businesses include its Pulp and Paper Division, the world's largest source of chemicals for the paper industry; and Aqualon, a world leader in products that modify physical properties of water-based systems. For more information, visit Hercules at herc.com.
This news release includes forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, reflecting management's current analysis and expectations, based on reasonable assumptions. Results could differ materially depending on such factors as business climate, economic and competitive uncertainties, failure to complete transactions, adverse legal and regulatory developments, and adverse changes in economic and political climates around the world. As appropriate, additional factors are contained in reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. This paragraph is included to provide safe harbor for forward-looking statements, which are not required to be publicly revised as circumstances change.
--30--mem/ny*
CONTACT:
GE
GE Specialty Materials,
Milissa Rocker, 518/233-3893
Pager - 518/341-3390
or
Hercules Incorporated
Media:
John S. Riley, 302/594-6025
Investor Relations
Robert C. Flexon, 302-594-6021
or
BetzDearborn
Robert J. Palangio, 215/953-2569
KEYWORD: CONNECTICUT
INDUSTRY KEYWORD: CHEMICALS/PLASTICS COMPUTERS/ELECTRONICS
MINING/METALS MERGERS/ACQ
SOURCE: GE Specialty Materials