Altana acquires electrical insulation business from Schenectady International

Strategic strengthening of ALTANA Chemie

15-Apr-2003

Altana AG, Bad Homburg, Germany, and Schenectady International, Inc. (SII), USA, announced yesterday 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.

https://www.chemeurope.com/en/news/22234/altana-acquires-electrical-insulation-business-from-schenectady-international.html