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FORM 8-K - CURRENT REPORT
United States
Securities and Exchange Commission
Washington DC 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: November 29, 1999
SOVEREIGN SPECIALTY CHEMICALS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of 36-4176637
Incorporation or Organization) (IRS Employer Identification No.)
225 W. Washington St. - Ste. 2200, Chicago, IL 60606
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (312) 419-7100
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ITEM 5
Sovereign Specialty Chemicals, L.P., the parent partnership of Sovereign
Specialty Chemicals, Inc., has signed a definitive agreement to sell 75% of its
100% ownership stake in Sovereign Specialty Chemicals, Inc., to an investor
group led by AEA Investors Inc. The remaining 25% of the company will continue
to be owned by other investors, including Sovereign's current management team.
The transaction is expected to close within the next 60 days and is subject to
certain customary closing conditions. The transaction has been structured with
the intent of complying with the covenants under the Indenture relating to the
9 1/2% Senior Subordinated Notes due 2007. However, Sovereign intends to advise
holders of the 9 1/2% Senior Subordinated Notes due 2007 of its intent to make
the change-of-control offer to purchase the notes required by the terms of the
Indenture.
AEA Investors Inc. is an international private equity firm, supported by
industrial families and chief executives of major corporations from around the
world.
Sovereign Specialty Chemicals is a leading manufacturer and marketer of
adhesives, sealants and coatings for various industrial and consumer
applications. Since its inception in early 1996, Sovereign has grown its
revenues to approximately $250 million through a combination of organic growth
and several acquisitions. Sovereign was founded with funding from a limited
partnership that included Waud Capital Partners and Robert Covalt.
J.P. Morgan served as exclusive financial advisor to Sovereign on this
transaction.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date November 29, 1999 Sovereign Specialty Chemicals, Inc.
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(Registrant)
/s/ John R. Mellett
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John R. Mellett, Vice President
and Chief Financial Officer
