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.