MacDermid Incorporated Announces Signing of Merger Agreement


Reading time ( words)

MacDermid, Incorporated (NYSE: MRD), a specialty chemical manufacturer located in Denver, Colorado, announced today that it has signed a definitive merger agreement under which Daniel H. Leever, its Chairman and Chief Executive Officer, and investment funds managed by Court Square Capital Partners and Weston Presidio will acquire MacDermid in a transaction valued at over $1.3 billion, including the assumption or repayment of approximately $301 million of debt. Joseph Silvestri, managing partner of Court Square Capital Partners, is a director of MacDermid and is involved in the merger. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Under the terms of the agreement, MacDermid stockholders will receive $35.00 in cash for each share of MacDermid common stock they hold. The purchase price represents a premium of approximately 21 percent over $28.82, the closing price on September 1, 2006, the last trading day before the Investor Group made its proposal to acquire MacDermid, and approximately 28 percent over the 30 day average closing price leading up to that date.

The Board of Directors of MacDermid, on the unanimous recommendation of a Special Committee comprised entirely of independent directors, has approved the merger agreement and has resolved to submit it to MacDermid's stockholders for their approval.

The transaction is expected to be completed in the first half of 2007, subject to receipt of MacDermid stockholder approval and regulatory approvals, as well as satisfaction of other customary closing conditions.

Mr. Leever said, "We are proud to partner with Court Square and Weston Presidio, each of which has an outstanding reputation and proven records of success. They are committed to working with us in continuing to build MacDermid and provide long-term solutions that deliver value to our customers. They understand our business, share our mindset, and have expressed an interest in investing additional capital to further fund the business and acquisitions. They will be strong partners moving forward."

Commenting further on the transaction, Mr. Leever said, "Our success is driven by the ongoing efforts of our 2,900 employees around the world. I want to thank them for their efforts and assure them we will remain true to our corporate philosophy. We will continue to focus on sustaining profitable growth by delivering outstanding products to customers."

The transaction will be financed through a combination of equity contributed by Mr. Leever and investment funds managed by Court Square Capital Partners and Weston Presidio, and debt financing provided by Credit Suisse Securities (USA) LLC. There is no financing condition to the obligations of the group of investors led by Mr. Leever to consummate the transaction.

Mr. Silvestri said, "Court Square is pleased to have the opportunity to invest alongside Dan Leever and the management team at MacDermid, all of whom we have known for a very long time. We believe the Company is extremely well positioned to continue to grow both internally and externally."

Merrill Lynch & Co. is acting as financial advisor to the Special Committee and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to the Special Committee. Merrill Lynch has delivered a fairness opinion to the Special Committee.

Credit Suisse is acting as financial advisor to the private equity investors and Dechert LLP is acting as legal advisor to the private equity investors and Mr. Leever.

About MacDermid

MacDermid is a leading worldwide manufacturer of specialty chemical processes for the metal and plastic finishing, electronics and graphic arts industries with operating facilities in 20 countries. MacDermid manufactures the following products: (1) chemical-based products used to decorate and protect metals and plastics; (2) specialty chemicals used to manufacture complex printed circuit boards; (3) lubricants and cleaning agents for the oil drilling and production industry; and (4) image transfer supplies for the commercial printing, newspaper and packaging industries. Established in 1922 in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Waterbury, Connecticut, MacDermid now maintains its principal executive offices in Denver, Colorado and employs 2,900 people worldwide. Learn more at the company's Web site, www.macdermid.com.

About Court Square Capital Partners

Court Square Capital Partners is a private equity firm with offices in New York and London. Court Square Capital Partners manages investment funds with over $6 Billion of assets including Citigroup Venture Capital Equity Partners and Court Square Capital Partners II.

About Weston Presidio

Weston Presidio formed in 1991, provides growth capital to companies across a wide range of industries. Weston Presidio has raised over $3.3 billion in capital through five investment funds and provided capital to over 300 leading growth companies.

Share

Print



Copyright © 2019 I-Connect007. All rights reserved.