BORDEN CHEMICAL TO ACQUIRE BAKELITE AG
October 11, 2004
Borden Chemical, Inc., a leading supplier of thermoset and other high-performance resins, adhesives and specialty materials, has announced the signing of a definitive agreement to acquire Bakelite AG from its parent company, Rutgers AG. Terms of the purchase agreement were not disclosed. The transaction is subject to regulatory and other customary closing conditions. Based in Iserlohn-Letmathe, Germany, Bakelite is a leading source of phenolic and epoxy thermosetting resins and moulding compounds with 13 manufacturing facilities in Europe and Asia. Last year, the company generated sales of $610 million. It has 1,700 employees. Borden Chemical employs 2,400 associates and reported 2003 sales of $1.4 billion. Craig O. Morrison, president and CEO of Borden Chemical, said, "We regard Bakelite as a strategic investment that will greatly expand our international operations, particularly in Europe or Asia, while extending our range of technology solutions into epoxy resins and other materials. The merging of our two businesses creates a company with true global reach." Morrison also highlighted the complementary fit of the two companies' operations. Most of Bakelite's sales and operations are outside North America, while the bulk of Borden Chemical's sales and operations are within North America. Bakelite was the world's first manufacturer of fully synthetic plastics, and is one of the best-known names in the synthetic resins industry. It is recognized for its strong technical solutions that deliver value across a range of customer applications.