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Hercules to sell 51% stake in FiberVisions LLC
01 Feb '06
3 min read
SPG also announced that Paul Chellgren, former Chairman and CEO of Ashland Inc and an exclusive Operating Partner of SPG, will become non-executive chairman of FiberVisions once the transaction closes.
"There is a great opportunity for SPG and Hercules to build upon FiberVisions' leading market position, enhance its strong customer base and support its expansion," said Chellgren, adding, "We intend to support FiberVisions' strategy to grow the business both organically and through acquisitions."
Closing is expected to occur by the end of March 2006 pending debt financing and other required approvals. In connection with its commitment to sell a majority interest in FiberVisions, Hercules recognized a non-cash goodwill impairment charge of $41.6 million and recorded a deferred tax charge of $7.6 million to provide for US taxes on previously undistributed earnings of a FiberVisions foreign subsidiary.
The cash proceeds from the transaction are expected to be used to pay down debt. The transaction is expected to be earnings accretive in 2006.
FiberVisions is the leading global producer of specialty fibers for nonwoven fabrics and textile fibers used in consumer and industrial products. It also is the global leader in the marketing of bicomponent specialty fibers through ES FiberVisions, a joint venture with Chisso Corporation.
Hercules Incorporated manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets.
"There is a great opportunity for SPG and Hercules to build upon FiberVisions' leading market position, enhance its strong customer base and support its expansion," said Chellgren, adding, "We intend to support FiberVisions' strategy to grow the business both organically and through acquisitions."
Closing is expected to occur by the end of March 2006 pending debt financing and other required approvals. In connection with its commitment to sell a majority interest in FiberVisions, Hercules recognized a non-cash goodwill impairment charge of $41.6 million and recorded a deferred tax charge of $7.6 million to provide for US taxes on previously undistributed earnings of a FiberVisions foreign subsidiary.
The cash proceeds from the transaction are expected to be used to pay down debt. The transaction is expected to be earnings accretive in 2006.
FiberVisions is the leading global producer of specialty fibers for nonwoven fabrics and textile fibers used in consumer and industrial products. It also is the global leader in the marketing of bicomponent specialty fibers through ES FiberVisions, a joint venture with Chisso Corporation.
Hercules Incorporated manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets.
Hercules Incorporated
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