CROMPTON
NEWS
CONTACTS:
Crompton Corporation:
Investors: William Kuser (203) 573-2213
Media: Debra Durbin (203) 573-3005
CROMPTON TO SELL REFINED PRODUCTS BUSINESS
TO SUN CAPITAL PARTNERS GROUP
Middlebury, CT, March 18, 2005 - Crompton Corporation (NYSE: CK) today announced
that it has signed a definitive agreement to sell its Refined Products business to Sun
Capital Partners Group Inc. for $80 million, subject to adjustment. The transaction is
subject to regulatory and other approvals and the negotiation of certain ongoing supply
arrangements. It is expected to close within 60 days.
"This sale is part of our plan to divest non-core assets and businesses and focus our
resources on the businesses that will produce the greatest results for us and provide the
best fit with our business strategy," said Crompton Chairman and CEO Robert L. Wood.
Refined Products had 2004 revenues of approximately $265 million. Included in the sale
are facilities in Petrolia, Pennsylvania; and Amsterdam, Koog aan de Zaan and Haarlem,
the Netherlands. The business employs approximately 470 people, who will remain with
the Refined Products business. Refined Products will operate as a stand-alone
business owned by Sun Capital Partners Group Inc., with a minority investment by Dale
LeFebvre and GRP Capital LLC. GRP Capital advised Sun Capital on the transaction
and also invested in Refined Products with Sun Capital.
Michael Fieldstone, vice president of Sun Capital Partners Inc., said, "Refined Products
is a global leader in its market niche, with a reputation for manufacturing high-quality
products to its broad and diversified customer base. We look forward to working with the
experienced management team and dedicated employees to fully leverage these strong
attributes and to position the company for long-term success."
Refined Products is the world's largest dedicated supplier of white oils, petrolatums,
microcrystalline waxes and other refined hydrocarbons. The products are used for
personal care items, such as creams and lotions, cosmetics and pharmaceutical
ointments, as well as for food processing, agricultural dust suppression, polymer
processing, telecommunications wire and cable, and air-conditioning and refrigeration
lubricants.
Crompton Corporation, with annual sales of $2.5 billion, is a producer and marketer of
specialty chemicals and polymer products and equipment. Additional information
concerning Crompton Corporation is available at www.cromptoncorp.com
.
Sun Capital Partners Inc., a leading private investment firm, focuses on leveraged
buyouts and investments in middle market companies that can benefit from its in-house
operating and management experience. Sun Capital affiliates have invested in more
than 80 companies since Sun Capital's inception in 1995, with combined sales in excess
of $18 billion. Sun Capital has offices in Boca Raton, Florida; Los Angeles; New York
and London. More information about Sun Capital Partners is available on their Web Site
at www.SunCapPart.com
Forward-Looking Statement
Certain statements made in this release are forward-looking statements that involve
risks and uncertainties, including, but not limited to, general economic conditions, the
outcome and timing of antitrust investigations and related civil lawsuits to which the
Company is subject, the ability to obtain selling price increases, pension and other post-
retirement benefit plan assumptions, energy and raw material prices and availability,
production capacity, changes in interest rates and foreign currency exchange rates,
changes in technology, market demand and customer requirements, the enactment of
more stringent environmental laws and regulations, the ability to realize expected cost
savings under the Company's cost reduction initiatives, the amount of any additional
earn-out payments from GE, the ability to reduce the Company's debt levels, and other
risks and uncertainties detailed in the Company's filings with the Securities and
Exchange Commission. These statements are based on the Company's estimates and
assumptions and on currently available information. The forward-looking statements
include information concerning our possible or assumed future results of operations, and
the Company's actual results may differ significantly from the results discussed.
Forward-looking information is intended to reflect opinions as of the date this release
was issued and such information will not necessarily be updated by the Company.
