Exhibit 99.1
IMMEDIATE RELEASE
02-03-R
HERCULES ANNOUNCES AGREEMENT TO SELL
THE WATER TREATMENT BUSINESS OF BETZDEARBORN
WILMINGTON, DE, FEBRUARY 12, 2002 . . . Hercules Incorporated (NYSE: HPC)
announced today that it has entered into an agreement to sell the Water
Treatment business of its BetzDearborn Division to GE Specialty Materials, a
unit of General Electric Company (NYSE: GE). The Paper Process Chemicals
business, approximately one-third of the BetzDearborn company purchased by
Hercules in 1998, will remain with Hercules. In addition, Hercules will have an
agreement with GE to distribute and service BetzDearborn's water treatment
products to the pulp and paper industry. This transaction is subject to
regulatory and other customary approvals, and is expected to close in spring
2002. The purchase price is $1.8 billion in cash, with net after tax proceeds
available for debt reduction of approximately $1.665 billion.
"This transaction is extremely significant for our Company and all our
constituents including customers, employees, and shareholders," said Dr. William
H. Joyce, Chairman and Chief Executive Officer of Hercules. "Last year, the
Company was in a difficult financial situation, carrying too much debt. A
corporate-wide work process program to reduce costs has made the debt manageable
and all of our businesses more valuable. The sale of the water treatment
business is the second step in the program and will sharply reduce our debt and
permit us to better support the corporation's remaining businesses and enhance
shareholder value from a position of strength."
Since January 2001, from this and other transactions, the Company will have
received net proceeds of approximately $2 billion enabling us to reduce debt.
With greater financial flexibility Hercules will now focus on the future of its
remaining businesses. These include Aqualon, Pulp and Paper (including the
retained BetzDearborn Paper Process chemical products acquired in 1998),
FiberVisions, and Rosins and Terpenes.
Aqualon is a world leader in managing the properties of water-based systems. The
Pulp and Paper Division is the largest and most technically advanced supplier of
functional, process and water treatment chemical programs for the pulp and paper
industry. FiberVisions is the world's leading producer of polypropylene staple
fibers for hygiene markets. The Rosins and Terpenes businesses produce specialty
resins for adhesives and food and beverage applications.
BetzDearborn is a global water treatment service company emphasizing a total
solutions approach to helping customers increase productivity, reduce operating
costs, and meet environmental goals. The Water Treatment business has
approximately $1 billion in annual sales, 3600 employees worldwide and 2001
EBITDA (earnings before interest, taxes, depreciation and amortization) of $217
million.
# # #
Hercules manufactures and markets chemical specialties used in making a variety
of products for home, office and industrial markets. The Company's businesses
includes its Pulp and Paper Division, the world's largest source of chemicals
for the paper industry; Aqualon, a world leader in products that modify physical
properties of water-based systems; and FiberVisions, the world's leading
producer of polypropylene staple fibers for hygiene markets. Its Rosins and
Terpenes business produces specialty resins for adhesives and food and beverage
applications. For more information, visit the Hercules website at www.herc.com.
Specialty Materials is a new GE growth platform offering a wide range of
products including fused quartz, polymer additives, silicones and industrial
diamonds. GESM uses technological innovation and Six Sigma to serve customers in
markets as diverse as cosmetics, semi-conductors, oil drilling, construction and
telecommunications. Visit GE Specialty Materials online at
gespecialtymaterials.com.
BetzDearborn has its global headquarters in Trevose, Pennsylvania and is a
division of Hercules Incorporated. They have offices in 52 countries and
operations throughout the world. It has four regional centers and 25 production
plants located in North America, Asia-Pacific, Europe, and Latin America.
BetzDearborn is a world leader in the engineered chemical treatment of water and
process systems in industrial, commercial and institutional facilities. Their
products are used in plant utilities such as boilers, cooling towers, and
wastewater systems, as well as in manufacturing operations. Visit BetzDearborn
online at betzdearborn.com.
This news release includes forward-looking statements, as defined in the Private
Securities Litigation Reform Act of 1995, reflecting management's current
analysis and expectations, based on reasonable assumptions. Results could differ
materially depending on such factors as business climate, economic and
competitive uncertainties, failure to complete transactions, adverse legal and
regulatory developments, and adverse changes in economic and political climates
around the world. As appropriate, additional factors are contained in reports
filed with the Securities and Exchange Commission. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of
the date of this press release. This paragraph is included to provide safe
harbor for forward-looking statements, which are not required to be publicly
revised as circumstances change.
FOR MORE INFORMATION, CONTACT:
HERCULES INCORPORATED:
Media Contact: John S. Riley, 302-594-6025
JRILEY@HERC.COM
Investor Relations: Robert C. Flexon, 302-594-6021
RFLEXON@HERC.COM
GE SPECIALTY MATERIALS:
Media Contact: Milissa Rocker, 518-233-3893 / Pager - 518-341-3390
MILISSA.ROCKER@GEPEX.GE.COM
BETZDEARBORN: Robert J. Palangio, 215-953-2569
ROBERT.J.PALANGIO@BETZDEARBORN.COM