================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. __)
------------------------------
HERCULES INCORPORATED
(Name of Issuer)
COMMON STOCK, $25/48 STATED VALUE PER SHARE 427056106
(Title of class of securities) (CUSIP number)
RICHARD A. WEINBERG, ESQ.
C/O ISP MANAGEMENT COMPANY, INC.
1361 ALPS ROAD
WAYNE, NEW JERSEY 07470
(973) 628-4000
(Name, address and telephone number of person authorized
to receive notices and communications)
WITH A COPY TO:
STEPHEN E. JACOBS, ESQ.
WEIL, GOTSHAL & MANGES LLP
767 FIFTH AVENUE
NEW YORK, NEW YORK 10153-0119
(212) 310-8000
JULY 14, 2000
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-(g), check the
following box. [ ]
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 (the "Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act. (However, see the
Notes.)
(Continued on following pages)
(Page 1 of 12 Pages)
================================================================================
NY2:\947310\01\K@Y601!.DOC\99980.0025
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 427056106 13D Page 2 of 12 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON ISP OPCO HOLDINGS INC.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: OO
---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 10,719,200
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 10,719,200
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
10,719,200
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.99%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 427056106 13D Page 3 of 12 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON ISP INVESTMENTS INC.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC, OO
---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 10,719,200
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 10,719,200
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
10,719,200
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.99%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 427056106 13D Page 4 of 12 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON INTERNATIONAL SPECIALTY PRODUCTS INC.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: OO
---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 10,719,200
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 10,719,200
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
10,719,200
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.99%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITEM 1. SECURITY AND ISSUER
This statement of beneficial ownership on Schedule 13D
("Schedule 13D") relates to the common stock, stated value $25/48 per share
("Common Stock"), of Hercules Incorporated (the "Company"). The address of the
principal executive office of the Company is Hercules Plaza, 1313 North Market
Street, Wilmington, Delaware 19894-0001.
ITEM 2. IDENTITY AND BACKGROUND
The persons filing this Schedule 13D are ISP Opco Holdings
Inc., a Delaware corporation ("ISP Opco"), ISP Investments Inc., a Delaware
corporation ("ISP Investments"), and International Specialty Products Inc., a
Delaware corporation ("ISP"). ISP Opco, ISP Investments and ISP have their
principal place of business at 300 Delaware Avenue, Wilmington, Delaware 19801.
ISP Opco, ISP Investments and ISP are sometimes hereinafter referred to as the
"Reporting Persons."
ISP Opco is a wholly-owned subsidiary of ISP. ISP Investments
is an indirect, wholly-owned subsidiary of ISP Opco. Samuel J. Heyman
beneficially owns (as defined in Rule 13d-3 of the Act) approximately 76% of the
capital stock of ISP and is the Chairman of the Board of ISP.
The business of ISP consists primarily of owning 100% of the
outstanding common stock of ISP Opco. The business of ISP Investments consists
of holding investments for ISP Opco. ISP Opco, through its wholly-owned
subsidiaries, develops, manufactures, sells and distributes specialty chemicals
and mineral products.
The name, position, business address and citizenship of each
director and executive officer of ISP Opco are set forth on Schedule A hereto.
The name, position, business address and citizenship of each
director and executive officer of ISP Investments are set forth on Schedule B
hereto.
The name, position, business address and citizenship of each
director and executive officer of ISP are set forth on Schedule C hereto.
None of the Reporting Persons nor any of the persons listed on
Schedules A through C hereto has, during the last five years, (i) been convicted
in a criminal proceeding (excluding traffic violations or similar misdemeanors)
or (ii) been a party to a civil proceeding of a judicial or administrative body
of competent jurisdiction as a result of which such person was or is subject to
a judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
a violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The aggregate amount of funds used by the Reporting Persons to
purchase the 10,719,200 shares of Common Stock (the "Shares") beneficially owned
(or deemed, solely for purposes of Rule 13d-3, to be beneficially owned) by
them, directly or indirectly, was approximately $153,185,679, including
commissions.
5
<PAGE>
The funds used to purchase such Shares were obtained by ISP
Investments from working capital of ISP Investments, loans from affiliates and
borrowings pursuant to standard margin arrangements.
ITEM 4. PURPOSE OF TRANSACTION
The Reporting Persons acquired the Shares to obtain an equity
position in the Company, the Common Stock of which, in the opinion of the
Reporting Persons, has been undervalued. Subject to, among other things,
availability at prices deemed favorable by the Reporting Persons, the Reporting
Persons may purchase additional shares of Common Stock from time to time in the
open market or otherwise. The Reporting Persons also may attempt to dispose of
Shares in the open market, in privately negotiated transactions or otherwise.
The Reporting Persons consider their equity position to be for
investment purposes only. Although the possibility of a business combination
with the Company has been raised and may be considered in the future, the
Reporting Persons have made no determination to seek control of the Company.
Except as set forth above, the Reporting Persons have no
present plans or intentions which would result in or relate to any of the
transactions described in subparagraphs (a) through (j) of Item 4 of Schedule
13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
As of the close of business on July 21, 2000, the Reporting
Persons beneficially owned (or are deemed, solely for purposes of Rule 13d-3, to
beneficially own), directly or indirectly, an aggregate of 10,719,200 Shares,
representing approximately 9.99% of the Common Stock outstanding on July 21,
2000 (based on 107,198,197 shares of Common Stock believed by the Reporting
Persons to be outstanding as of April 30, 2000). ISP Investments has direct
beneficial ownership of all of such Shares.
ISP Investments has the sole power to vote, direct the voting
of, dispose of and direct the disposition of the Shares. ISP Opco, by virtue of
its ownership of all of the outstanding capital stock of ISP Investments, may be
deemed to own beneficially (solely for purposes of Rule 13d-3) the Shares. ISP,
by virtue of its ownership of all of the outstanding common stock of ISP Opco,
may be deemed to own beneficially (solely for purposes of Rule 13d-3) the
Shares. Mr. Heyman, by virtue of his beneficial ownership (as defined in Rule
13d-3) of approximately 76% of the capital stock of ISP, may be deemed to own
beneficially (solely for purposes of Rule 13d-3) the Shares.
In the past 60 days, ISP Investments effected transactions in
Shares in open market transactions as set forth in Schedule D hereto.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER
None.
6
<PAGE>
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
None.
[The remainder of this page intentionally left blank.]
7
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of their knowledge
and belief, the undersigned certifies that the information set forth in this
Statement is true, complete and correct.
Dated: July 24, 2000
ISP OPCO HOLDINGS INC.
ISP INVESTMENTS INC.
INTERNATIONAL SPECIALTY PRODUCTS INC.
By: /s/ Susan B. Yoss
-----------------------------------
Susan B. Yoss
Senior Vice President and Treasurer
8
<PAGE>
SCHEDULE A
The name and position of the directors and executive officers
of ISP Opco Holdings Inc. are set forth below. The business address of each
director and executive officer is c/o ISP Management Company, Inc., 1361 Alps
Road, Wayne, New Jersey 07470, except as indicated below. All executive officers
and directors are citizens of the United States.
Name Position
---- --------
Sunil Kumar President and Chief Executive Officer
Randall R. Lay Executive Vice President and Chief Financial
Officer
Richard A. Weinberg Director, Executive Vice President, General
Counsel and Secretary
Andrew G. Mueller Executive Vice President - Operations
Barry A. Crozier Director and Vice President
Arthur W. Clark Director and Manager - Banking and Cash
Operations
Mr. Crozier is a certified public accountant with Belfint, Lyons & Shuman, an
accounting firm, the address of which is 200 West 9th Street, Suite 600,
Wilmington, Delaware 19801.
9
<PAGE>
SCHEDULE B
The name and position of the directors and executive officers
of ISP Investments Inc. are set forth below. The business address of each
director and executive officer is c/o ISP Management Company, Inc., 1361 Alps
Road, Wayne, New Jersey 07470, except as indicated below. All executive officers
and directors are citizens of the United States.
Name Position
---- --------
Sunil Kumar President and Chief Executive Officer
Randall R. Lay Executive Vice President and Chief Financial
Officer
Richard A. Weinberg Director, Executive Vice President, General
Counsel and Secretary
Barry A. Crozier Vice President and Director
Arthur W. Clark Director and Manager - Banking and Cash Operations
Mr. Crozier is a certified public accountant with Belfint, Lyons & Shuman, an
accounting firm, the address of which is 200 West 9th Street, Suite 600,
Wilmington, Delaware 19801.
10
<PAGE>
SCHEDULE C
The name and position of the directors and executive officers
of International Specialty Products Inc. are set forth below. The business
address of each director and executive officer is c/o ISP Management Company,
Inc., 1361 Alps Road, Wayne, New Jersey 07470, except as indicated below. All
executive officers and directors are citizens of the United States.
Name Position
---- --------
Samuel J. Heyman Director and Chairman
Sunil Kumar Director, President and Chief Executive Officer
Randall R. Lay Executive Vice President and Chief Financial
Officer
Richard A. Weinberg Executive Vice President, General Counsel and
Secretary
Andrew G. Mueller Executive Vice President - Operations
Susan B. Yoss Senior Vice President and Treasurer
Ronald E. Brandt Senior Vice President, Sales and Commercial
Director--Americas
Carl R. Eckardt Director
Harrison J. Goldin Director
Charles M. Diker Director
Sanford Kaplan Director
Burt Manning Director
Mr. Eckardt is a former executive officer of International Specialty Products
Inc. and currently serves as a consultant. Mr. Goldin is the senior managing
director of Goldin Associates, L.L.C., a consulting firm, the address of which
is 767 Fifth Avenue, New York, New York 10153. Mr. Diker is a non-managing
principal of Weiss, Peck & Greer, an investment management firm, the address of
which is 1 New York Plaza, New York, New York 10004. Mr. Kaplan is a private
investor and consultant. Mr. Manning is Chairman Emeritus of J. Walter Thompson
Company, a multinational advertising company, and President of Brookbound
Incorporated, a strategic consultancy company, the address of which is 105 East
67th Street, New York, New York 10021.
11
<PAGE>
SCHEDULE D
The following schedule sets forth information with respect to each
purchase of Shares which was effectuated by the Reporting Persons during the
past 60 days. All transactions were effectuated in the open market through a
broker.
ISP Investments Inc. (directly and through ISP Investments Grantor Trust)
-------------------------------------------------------------------------
Number of
Date Shares Purchased (Sold) Price per Share*
---- ----------------------- ----------------
6/5/00 14,100 $16.8125
6/6/00 41,200 16.7811
6/7/00 35,000 16.7975
6/8/00 14,400 16.6875
6/9/00 16,000 16.3086
6/19/00 70,000 16.3086
6/20/00 50,000 15.6339
6/22/00 2,500 14.9375
6/23/00 25,000 15.1250
7/10/00 35,000 13.6250
7/11/00 35,000 13.6786
7/12/00 11,800 13.5000
7/14/00 5,355,000 12.8729
7/17/00 40,000 12.5963
7/20/00 3,000 12.2083
7/21/00 4,000 11.8906
*Excluding commissions
12
