Hanson Industries to Sell Most of Glidden Group

Hanson Industries said Friday that it has agreed to sell most of the Glidden coatings and resins business of its SCM Corp. unit to Britain’s largest industrial company, Imperial Chemical Industries PLC, for $580 million.

SCM, whose coatings include paints sold under the Glidden and Spred Satin names, was acquired in March by Hanson Industries’ parent company, Hanson Trust PLC of Britain, for $930 million.

Hanson Industries said it agreed to sell Glidden’s U.S. and Canadian operations to Imperial Chemical, which is one of the world’s largest producers of chemicals and paints. Imperial Chemical’s 1985 sales totaled $16.4 billion, including $1.25 billion in paint sales.

Latin Operations Not Included

The Glidden group, headquartered in Cleveland, has 4,500 employees and operates 12 plants in North America. The group also has some Latin American operations that were not included in the proposed sale.

Besides paints sold at the retail level, the group sells specialized paints and coatings used by commercial customers on appliances, metal cans and plastics.

In the year ended June 30, SCM’s coatings and resins group recorded sales of more than $650 million and pretax earnings exceeding $60 million, Hanson said.

After the sale is completed, Hanson said it will have raised nearly $810 million from the sale of certain SCM assets, or 87% of what it paid to buy all of SCM. SCM’s remaining businesses include chemicals, paper products and consumer goods such as Smith-Corona typewriters and Durkee foods.

The sale of the Glidden group “represents an attractive return on investment for our shareholders and will provide greater flexibility for us to pursue other opportunities,” Hanson Industries Chairman Sir Gordon White said in a statement.

“Further, ICI’s leadership position in world paint markets and its commitment to research and development in this field makes this a highly suitable match for both ICI and Glidden,” White said.