FAIRLAWN, Ohio, March 6, 2012 /PRNewswire/ -- OMNOVA
Solutions (NYSE:OMN) today announced that it has sold its
U.K.-based Muraspec commercial wallcovering business to affiliates
of a2e Venture Catalysts Limited, and its principal Amin Amiri based in Manchester, United Kingdom. Muraspec
produces and distributes wallcoverings and other interior surfacing
products, primarily to commercial markets in the U.K., Europe and the Middle East.
This stock transaction involves the entire Muraspec business
including all brands, a plant in Kent,
U.K., a design and distribution center outside London, plus sales offices in Paris, Warsaw
and Dubai. Muraspec has approximately $40 million in sales. OMNOVA operated
Muraspec as a stand-alone business.
"The sale of our European wallcovering business allows us to
focus our resources on our global Performance Chemicals business as
well as the coated fabrics, laminates and performance films product
lines within Decorative Products that offer greater global growth
potential," said Kevin McMullen,
OMNOVA Solutions' Chairman and Chief Executive Officer. "Due
to the very different design preferences of countries and cultures
throughout the world, the global commercial wallcovering market
tends to require a regional focus, which a2e will be in a better
position to serve.
"I want to thank each of our associates in the Muraspec business
for their dedication and service to the Company. Their
efforts have built a strong reputation for the Muraspec name and
its related brands. We wish them continued success," McMullen
said.
Under key terms of the transaction, OMNOVA will receive
approximately US$7.0 million in cash
and notes.
This announcement follows the December
2011 sale of certain assets of OMNOVA's North American
commercial wallcovering business to J. Josephson. Going
forward, OMNOVA's decorative products portfolio will include coated
fabrics, laminates, performance films, digital wall murals and
laminated surfaces for the interior construction systems
market.
This press release includes "forward-looking statements" as
defined by federal securities laws. These statements, as well
as any verbal statements by the Company in connection with this
press release, are intended to qualify for the protections afforded
forward-looking statements under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements reflect
management's current expectation, judgment, belief, assumption,
estimate or forecast about future events, circumstances or results
and may address business conditions and prospects, strategy,
capital structure, sales, profits, earnings, markets, products,
technology, operations, customers, raw materials, financial
condition, and accounting policies, among other matters.
Words such as, but not limited to, "will," "may," "should,"
"projects," "forecasts," "seeks," "believes," "expects,"
"anticipates," "estimates," "intends," "plans," "targets,"
"optimistic," "likely," "would," "could," and similar expressions
or phrases identify forward-looking statements.
All forward-looking statements involve risks and
uncertainties. Many risks and uncertainties are inherent in
business generally and the markets in which the Company operates or
proposes to operate. Other risks and uncertainties are more
specific to the Company's businesses including businesses the
Company acquires. The occurrence of such risks and
uncertainties and the impact of such occurrences is often not
predictable or within the Company's control. Such impacts
could adversely affect the Company's results and, in some cases,
such effect could be material.
All written and verbal forward-looking statements attributable
to the Company or any person acting on the Company's behalf are
expressly qualified in their entirety by the risks, uncertainties,
and cautionary statements contained herein. Any
forward-looking statement speaks only as of the date on which such
statement is made, and the Company undertakes no obligation, and
specifically declines any obligation other than that imposed by
law, to publicly update or revise any forward-looking statements
whether as a result of new information, future events or
otherwise.
Risks and uncertainties that may cause actual results to differ
materially from expected results include, among others:
economic trends and conditions affecting the economy in general
and/or the Company's end-use markets; prices and availability of
raw materials including styrene, butadiene, vinyl acetate monomer,
polyvinyl chloride, acrylonitrile, acrylics and textiles; ability
to increase pricing to offset raw material cost increases; product
substitution and/or demand destruction due to product technology,
performance or cost disadvantages; customer concentration and loss
of a significant customer; supplier, customer and/or competitor
consolidation; customer credit and bankruptcy risk; ability to
successfully develop and commercialize new products; a decrease in
regional demand due to reduced customer production or increased
import competition; risks associated with international operations
including political unrest, fluctuations in exchange rates, and
regulatory uncertainty; ability to successfully implement
productivity enhancement and cost reduction initiatives; risks
associated with chemical manufacturing and with acts of war,
terrorism, natural disasters or accidents, including fires, floods,
explosions and releases of hazardous substances; unplanned full or
partial suspension of plant operations; ability to comply, and cost
of compliance with legislative and regulatory changes, including
changes impacting environmental, health and safety compliance and
changes which may restrict or prohibit the Company from using or
selling certain products and raw materials; losses from the
Company's strategic alliance, joint venture, acquisition,
integration and operational activities; rapid inflation in health
care costs; loss of key employees and inability to attract and
retain new key employees; prolonged work stoppage resulting from
labor disputes with unionized workforce; changes in, and
significant contributions required to meet, pension plan funding
obligations; attacks on and/or failure of the Company's information
systems; infringement or loss of the Company's intellectual
property; litigation and claims against the Company related to
products, services, contracts, employment, environmental, safety,
intellectual property and other matters; adverse litigation
judgments or settlements; absence of or inadequacy of insurance
coverage for litigation judgments, settlements or other losses;
stock price volatility; availability of financing at anticipated
rates and terms; and loan covenant default arising from substantial
debt and leverage and the inability to service that debt, including
increases in applicable short-term or long-term borrowing
rates.
For further information on risks and uncertainties, see the
Company's Form 10-K and 10-Q filings with the Securities and
Exchange Commission.
OMNOVA Solutions is a technology-based company with fiscal 2011
pro forma sales of $1.2 billion and a
global workforce of approximately 2,300. OMNOVA is an
innovator of emulsion polymers, specialty chemicals, and decorative
and functional surfaces for a variety of commercial, industrial and
residential end uses. Visit OMNOVA Solutions on the internet
at www.omnova.com.
SOURCE OMNOVA Solutions