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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) 6 May 1998
Air Products and Chemicals, Inc.
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(Exact name of registrant as specified in charter)
Delaware 1-4534 23-1274455
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(State of other jurisdiction (Commission (IRS Identification
of incorporation) file number) number)
7201 Hamilton Boulevard, Allentown, Pennsylvania 18195-1501
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (610) 481-4911
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Item 5. Other Events.
The Board of Directors of the Registrant has approved a two-for-one stock
split. The additional shares will be issued on June 15, 1998, to shareholders of
record on May 15, 1998. The Board also declared the next quarterly cash dividend
will be increased 13 percent, from 15 cents per share to 17 cents per share on a
post-split basis. The dividend is payable on August 10, 1998, to shareholders of
record on July 1, 1998.
Commenting on the Board's action, Air Products' Chairman and Chief
Executive Officer H. A. Wagner said, "The Board's action creates a share price
that should be attractive to a broad range of investors. The stock split and
increase in the cash dividend together reflect our continued confidence in the
long-term prospects for Air Products' businesses."
Additionally, the Registrant and Wacker-Chemie GmbH (Munich, Germany) have
substantially concluded negotiations to combine their emulsions and
redispersible powder businesses within two joint venture entities they expect to
establish and start up on October 1, 1998. The combined sales revenues of the
two joint venture entities -- each with its own management team -- will exceed
US$700 million. The two companies have been in discussions regarding the
formation of the joint ventures since late last year.
The emulsions joint venture entity will combine Wacker's vinyl
acetate-ethylene (VAE) operations at Cologne, Germany with Air Products'
emulsion-producing facilities in the United States to produce approximately one
billion pounds per year of emulsions. Also included in the emulsions joint
venture entity are the Registrant's manufacturing facilities in San Juan del
Rio, Mexico and Korea which are being expanded by acquiring the business of
TaeYoung Chemical Corporation, Ulsan City. These emulsions are used in a wide
variety of applications, including adhesives, coatings, paints, paper coatings,
inks and nonwovens.
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The redispersible powders joint venture entity will combine Wacker's
VAE-based redispersible powders production facility at Burghausen, Germany with
Air Products' powder manufacturing capabilities at Calvert City, Kentucky to
produce "dry emulsions" for building product applications, including tile
mortar, caulks, exterior insulation and finish systems (EIFS) and other
applications.
The Registrant and Wacker are now in the process of completing the legal
and administrative documentation and other arrangements necessary to create and
operate the joint ventures. Approval will be obtained from the relevant merger
control authorities prior to start-up.
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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, thereunto duly authorized.
Air Products and Chemicals, Inc.
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(Registrant)
Dated: 6 May 1998 By: /s/ James H. Agger
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James H. Agger
Senior Vice President
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