Betz, Rival to Merge, Creating Worldwide Chemicals Leader
From Associated Press
Betz Laboratories Inc. agreed Monday to buy W.R. Grace & Co.’s competing Dearborn division, a move that would make it the world leader in water treatment chemicals.
The purchase--for $632 million in cash--would create a global company, combining Dearborn’s international operations with Betz’s bases in the U.S., Europe and Asia.
Betz’s domestic sales were 72% of revenue; Dearborn’s international sales accounted for 70% of sales.
Trevose, Pa.-based Betz projects combined sales of $1.2 billion when the purchase closes in the second quarter. Dearborn had sales of $400 million last year.
Shares of Grace fell $1.125 to $77.375; Betz shares fell 50 cents to $42.75. Both trade on the NYSE.
