Hercules Completes Resins Sale to Eastman

07-May-2001
Hercules Incorporated (NYSE: HPC) today announced that it has completed the sale of its hydrocarbon resins and select portions of the rosins resins businesses to Eastman Chemical Company (NYSE: emn). Gross proceeds from the divested businesses are approximately $244 million. In addition, Hercules will retain net working capital of approximately $22 million. The proceeds from the divestiture will be used by Hercules to reduce debt. About 700 Hercules employees will become Eastman employees. Hercules facilities included in the divestiture are in Jefferson, Pennsylvania; Middelburg, The Netherlands; Stonehouse, England; and Uruapan, Mexico. Additionally, unit operations were acquired, and will be operated under contract by Hercules, at shared facilities in Savannah, Georgia, and Franklin, Virginia. Products are being made for Eastman at four resin operations sites that remain with Hercules. They are at Hattiesburg, Mississippi; Brunswick, Georgia; Tampere, Finland; and Sobernheim, Germany. Hercules was assisted in this transaction by Deutsche Banc Alex. Brown. The Company had previously announced the pending sale of its peroxy chemicals unit to GEO Specialty Chemicals, Inc. In addition, Hercules stated that the sale of other components in the resins business is moving ahead.

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