Grace Completes Acquisition of Fine Chemistry Business
June 01 2021 - 9:15AM
W. R. Grace & Co. (NYSE: GRA) today announced the completion of
its acquisition of the Fine Chemistry Services business (“FCS”) of
Albemarle Corporation (NYSE: ALB) for approximately $570 million,
including $300 million paid in cash and $270 million funded through
the issuance to Albemarle of non-participating preferred equity of
a newly created Grace subsidiary.
“This investment represents an important step forward in Grace’s
growth strategy. FCS brings compelling innovation and manufacturing
capabilities to our Materials Technologies business, enabling us to
better serve our customers with high-value solutions that span
every stage of their development cycle,” said Hudson La Force,
Grace’s President and Chief Executive Officer. “We
are thrilled to welcome the FCS team to Grace and look forward to
leveraging their deep expertise to strengthen and expand our
fast-growing pharma portfolio.”
“FCS builds on the strengths of our Materials Technologies
portfolio by expanding our expertise and offerings and further
deepens our position in high growth pharma markets such as
oncology, diabetes, cardiovascular, and antiviral. The talented and
engaged team shares our values and vision to be indispensable to
our customers. Our customers will be delighted with the benefits of
the combined innovation and manufacturing capabilities,” said
Sandra Wisniewski, President, Grace Materials Technologies.
Pharma & Consumer is the largest, fastest growing and most
profitable subsegment within Grace’s Materials Technologies
business. FCS adds a comprehensive portfolio of high-value products
and services with highly complementary analytical, regulatory and
manufacturing capabilities to Grace’s existing pharma portfolio
focused on chromatographic resins, formulation excipients and drug
delivery, pharmaceutical intermediates and active pharmaceutical
ingredients.
About GraceBuilt on talent, technology, and
trust, Grace is a leading global specialty chemical company. The
company’s two industry-leading business segments—Catalysts
Technologies and Materials Technologies—provide innovative
products, technologies, and services that enhance the products and
processes of our customers around the world. With approximately
4,300 employees, Grace operates and/or sells to customers in over
60 countries. More information about Grace is available at
grace.com.
This announcement contains forward-looking statements, that is,
information related to future, not past, events. Such statements
generally include the words “believes,” “plans,” “intends,”
“targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,”
“continues,” or similar expressions. Forward-looking statements
include, without limitation, statements regarding: financial
positions; results of operations; cash flows; financing plans;
business strategy; operating plans; capital and other expenditures;
impact of the COVID-19 pandemic on our business; competitive
positions; growth opportunities for existing products; benefits
from new technology; benefits from cost reduction initiatives;
succession planning; markets for securities; the anticipated timing
of closing of the proposed transaction between Grace and affiliates
of Standard Industries Holdings Inc. and the potential benefits of
the proposed transaction. For these statements, Grace claims the
protections of the safe harbor for forward-looking statements
contained in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Grace is subject to risks and uncertainties that could cause actual
results or events to differ materially from its projections or that
could cause other forward-looking statements to prove incorrect.
Factors that could cause actual results or events to differ
materially from those contained in the forward-looking statements
include, without limitation: risks related to foreign operations,
especially in areas of active conflicts and in emerging regions;
the costs and availability of raw materials, energy, and
transportation; the effectiveness of Grace’s research and
development and growth investments; acquisitions and divestitures
of assets and businesses; developments affecting Grace’s
outstanding indebtedness; developments affecting Grace’s pension
obligations; legacy matters (including product, environmental, and
other legacy liabilities) relating to past activities of Grace; its
legal and environmental proceedings; environmental compliance costs
(including existing and potential laws and regulations pertaining
to climate change); the inability to establish or maintain certain
business relationships; the inability to hire or retain key
personnel; natural disasters such as storms and floods; fires and
force majeure events; the economics of its customers’ industries,
including the petroleum refining, petrochemicals, and plastics
industries, and shifting consumer preferences; public health and
safety concerns, including pandemics and quarantines; changes in
tax laws and regulations; international trade disputes, tariffs,
and sanctions; the potential effects of cyberattacks; the
occurrence of any event, change or other circumstance that could
give rise to the termination of the merger agreement between Grace
and Standard Industries Holdings Inc.’s affiliates; the failure to
obtain Grace shareholder approval of the transaction or the failure
to satisfy any of the other conditions to the completion of the
transaction; risks relating to the financing required to complete
the transaction; the effect of the announcement of the transaction
on the ability of Grace to retain and hire key personnel and
maintain relationships with its customers, vendors and others with
whom it does business, or on its operating results and businesses
generally; risks associated with the disruption of management’s
attention from ongoing business operations due to the transaction;
the ability to meet expectations regarding the timing and
completion of the transaction; significant transaction costs, fees,
expenses and charges; the risk of litigation and/or regulatory
actions related to the transaction; other business effects,
including the effects of industry, market, economic, political,
regulatory or world health conditions (including new or ongoing
effects of the COVID-19 pandemic), and other factors detailed in
Grace’s Annual Report on Form 10-K filed with the SEC for the
fiscal year ended December 31, 2020, as amended, and Grace’s other
filings with the SEC, which are available at http://www.sec.gov and
on Grace’s website at www.grace.com. Grace’s reported results
should not be considered as an indication of its future
performance. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. Grace undertakes no obligation to release publicly any
revisions to its forward-looking statements, or to update them to
reflect events or circumstances occurring after the dates those
statements are made.
Media RelationsCaitlin
LeopoldT +1
410.531.8870 caitlin.leopold@grace.com
Investor RelationsJason HershiserT +1
410.531.8835jason.hershiser@grace.com
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