Crompton and Hamilton Robinson to Form Polymer Processing Equipment Joint Venture
Middlebury, CT. & Stamford, CT. - March 31, 2005 - Crompton Corporation (NYSE: CK) and Hamilton Robinson LLC, a private equity firm, today announced that they have signed a definitive agreement to form a joint venture called Davis-Standard LLC (D-S LLC), combining their respective polymer processing equipment businesses.
D-S LLC, headquartered in Pawcatuck, Conn., will combine Crompton's Davis-Standard business and Hamilton Robinson's Black Clawson Converting Machinery Company (BCCM) and will have approximate annual revenues of $220 million with Crompton as the majority owner. The joint venture will be classified in Crompton's financials as an equity investment. The transaction, which is subject to regulatory approvals, is expected to close within the next 30 days.
"Our interests are very aligned with those of our partner - combining resources to capture synergies and achieve immediate performance improvement," said Crompton Chairman and CEO Robert L. Wood. "This industry has not yet recovered from the worst cyclical downturn in recent history. Given industry dynamics, we believe it is in the best interests of our shareholders for us to partner with a capable operator such as Black Clawson/Hamilton Robinson in order to leverage the benefits of industry consolidation."
Robert Ackley, president of Davis-Standard, said, "The combination with Black Clawson presents an excellent opportunity to increase the productivity and profitability of our customers worldwide. Joining forces will enable both companies to more efficiently allocate resources with regard to technology, delivery, commissioning, emergency service, customer support, research and development."
Mark Panozzo, president of Black Clawson, added, "Our objective for the new company is to focus on increasing customer value through improved product technology, global reach and enhanced local service and support."
Crompton's Davis-Standard business had 2004 revenues of approximately $180 million. Included in the joint venture are facilities in Pawcatuck, Conn.; and Somerville, N.J.; as well as in Germany and the UK. The business employs approximately 660 people, substantially all of whom will become D-S LLC employees after closing.
Black Clawson will contribute its Fulton, N.Y., facility. It employs approximately 150 people, substantially all of whom will also become D-S LLC employees after closing. Black Clawson is owned by Hamilton Robinson LLC, a private equity investor.
Davis-Standard is a world leader in the manufacture and supply of rubber and plastics extrusion equipment and industrial blow-molding machines. Davis-Standard extrusion machines are used primarily for the packaging, automotive, construction and medical industries. Its customers are processors of extruded products, including plastic sheet and profiles used in appliances, cars, sports equipment and furniture. Customers also produce items such as medical tubing, plastic bags, roof membranes, fencing and decking materials, footwear, sanitary products and specific tire components. For more information, visit www.davis-standard.com.
ABOUT BLACK CLAWSON
Black Clawson Converting Machinery, Inc. designs and manufactures a wide range of equipment for the flexible web converting and plastics processing industries. Product lines include equipment for extrusion coating and laminating, cast film production, liquid coating and laminating, unwinding and winding and pelletizing; all supported by BC Encompass services. Some of the markets served include flexible packaging, tapes, labels, marking films, imaging media, pre-coated consumer and industrial products and resin production.
For more information, visit www.bcconverting.com.