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[SOVEREIGN SPECIALTY CHEMICALS, INC. LOGO]
CONTACT:
John R. Mellett
Sovereign Speciality Chemicals, Inc.
312-419-4035
FOR IMMEDIATE RELEASE:
SOVEREIGN SPECIALTY CHEMICALS ACQUIRES
THE ADHESIVES BUSINESS OF CRODA INTERNATIONAL PLC.
Company builds its international presence
CHICAGO, October 31, 2000--Sovereign Specialty Chemicals, Inc. announced the
acquisition of the adhesives business of Croda International Plc. (UK) for an
initial purchase price of approximately $60 million. Additional contingent
consideration of up to approximately $4 million is payable in early 2001
depending on the performance of certain operations.
Croda's adhesives operations consist of three business units: North America,
based in suburban Chicago; Europe, based in Newark-on-Trent, UK; and Brazil,
based near Sao Paolo. Revenues for the business are in the range of $60 million
annually, with a strong emphasis in packaging and converting markets. Croda's
adhesives business is a leading supplier for cold seal, flexible packaging,
bookbinding, and case/carton sealing. They have a strong sales force serving
these markets on a direct basis, and a technology portfolio specialized in
water based and hot melt adhesives. Primary manufacturing locations are
Plainfield (Illinois), Newark (UK) and Kapellen (Belgium).
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Sovereign's Chairman and CEO Robert Covalt stated, "The acquisition of Croda's
adhesives business represents a true milestone for Sovereign. With the
acquisition of this business, we not only strengthen our leadership position in
North America, we also gain an international platform in our drive to become a
world leader in adhesives, sealants and coatings."
Sovereign Specialty Chemicals, Inc. is a leading developer, marketer and
distributor of high-performance specialty adhesives, sealants and coatings that
are utilized in a variety of industrial and commercial applications.
Headquartered in Chicago, Sovereign was founded by Robert Covalt and a group of
private investors in 1996. Sovereign has grown organically and through
acquisitions, becoming one of the premier companies in its field.
AEA Investors Inc. is the controlling investor in Sovereign and is one of the
most experienced international private equity investment firms with investors
that include former and current CEOs of major multinational corporations,
family groups, endowment funds and institutions from around the world.
SOURCE: Sovereign Speciality Chemicals, Inc.
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