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Chemical firms to combine
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March 8, 1999: 7:58 a.m. ET
U.S.-based Albemarle offers $657 million cash for U.K.'s Albright & Wilson
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LONDON (CNNfn) - Shares in U.K. chemical maker Albright & Wilson leapt nearly 17 percent in London Monday after U.S.-based Albemarle Corp. said it had offered to buy its transatlantic rival for 408 million pounds ($657 million) in cash.
Richmond, Virginia-based Albemarle, whose specialty polymers and fine chemicals are used in everything from household cleaners to headache drugs, said it had proposed to pay 130 pence, or about $2.08, for each of Albright & Wilson's 313.8 million outstanding shares. Albright's board has recommended shareholders accept the offer.
With 5,000 employees in operations in more than 30 countries, Albright is a global leader in the production of industrial phosphates, the chemicals that put the fizz in soft drinks. The company's annual sales range from $1 billion to $1.2 billion.
Albright's customers include makers of detergent, toothpaste, cheese processors and cakes.
In late January, Albright & Wilson said it had received a number of tentative approaches. Albemarle's offer Monday represented a 70 percent premium to Albright's stock price on Jan. 28, the day before it said it was in talks.
Floyd Gottwald Jr., Albemarle's chairman and chief executive officer, said Monday the offer would enable his company to expand product and service offerings in the polymer, pharmaceutical, agricultural, cleaning and water treatment markets.
"This combination will provide a larger global presence, new technological opportunities and new customer relationships that we believe will increase value for our shareholders," Gottwald said.
Albright & Wilson (AWN) stock was up 18-1/2 at 127 in London, a near-17 percent rise. Albemarle closed up 9/16 at 25-3/16 in New York Friday.
--from staff and wire reports
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