AIR PRODUCTS ACQUIRES TOMAH3 PRODUCTS TO ENHANCE PERFORMANCE MATERIALS SPECIALTY PRODUCTS AND BROADEN ACCESS TO NEW MARKETS
New Products Offer Innovative Technology and are Complementary to Air Products' Offerings
In 2004 Air Products and Tomah3 Products formed a commercial and product development relationship intended to leverage each other's product lines and applications technology for customers in their respective end-use industries. The knowledge gained, and the success of this relationship, led to today's announcement that an agreement has been signed under which Air Products will acquire Tomah, a producer of specialty surfactants and processing aids for growth segments of the institutional and industrial cleaning, mining, oil field and other industries. This $115 million acquisition is subject to regulatory approval and is expected to close by the end of March.
"Tomah's product mix complements Air Products' specialty surfactant offerings with new product functionality and new industry channels. Our Performance Materials business is a strategic growth platform for us, and Tomah has unique capabilities to create high value products. Together, the combined product lines and technical expertise will allow us to enhance our offerings to our core industries of coatings, inks and adhesives, and provide access to exciting, high growth market segments that are well served by Tomah," said Wayne Mitchell, vice president and general manager of Air Products' Performance Materials Division.
Through their relationship, Air Products and Tomah have been developing customized offerings for growth segments of their target markets that benefit from unique combinations of the companies' technologies. These offerings are increasingly attractive for customers seeking environmental and productivity benefits. The Tomah acquisition reflects Air Products' strategy to expand its presence in profitable market segments where it can build on its surface science expertise and further leverage its global scope and supply chain capabilities. Tomah's product lines, production capabilities and market channels support this strategy.
"We are pleased to merge our successful business with Air Products. Our companies have worked together successfully, and we share a passion to deliver solutions to customers' needs through high value products. Also, from a cultural standpoint, we share the same ideals when it comes to a commitment to safety, health and the environment. It is a good fit for our company and our people," said Stephen King, Sr., CEO of Tomah.
Tomah's broad portfolio of non-ionic surfactants, based on amine chemistry and alcohol alkoxylates, serve growth segments in a variety of end-use industries, including industrial and institutional (I&I) cleaning, mining, oil field, fuel & lube additives, among others. Each of these industries seeks performance additives that improve productivity, provide greater ease of use, and meet the growing regulatory trends, including protecting the environment through improved biodegradability and reduced emissions of volatile organic compounds (VOCs). Tomah's products and applications know-how provide customers with high value solutions to their needs.
Founded in 1967, Tomah is privately-owned company with $73 million of sales in 2005. The company employs approximately 90 people, and has production facilities located in Milton, Wis. and Reserve, La. The Milton plant produces amine-based surfactants, while the Reserve facility produces alcohol ethoxylate surfactants. Tomah's products have been sold through direct sales and a broad network of distributors, worldwide.
In addition to specialty surfactants, Air Products' Performance Materials growth platform, with sales of approximately $600 million in FY2005, includes epoxy and polyurethane additives and advanced materials. These products are sold based on performance characteristics that provide unique solutions for customers. They use proprietary technology based on Air Products' advanced surface and material science capabilities, and are sold into multiple targeted end use markets worldwide. They have consistently produced double-digit growth and sustainable returns above their cost of capital.
For years, Air Products has been ranked by the American Chemistry Council among the leading chemicals companies for safety. In 2002 Tomah received Wisconsin's Manufacturer of the Year Award for its corporate leadership in environmental consciousness.
About Air Products
Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $8.1 billion, operations in over 30 countries, and over 20,000 employees around the globe. For more information, visit www.airproducts.com.
NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.
Media Inquiries:
Art George
tel: (610) 481-1340; e-mail: georgeaf@airproducts.com
Investor Inquiries:
Phil Sproger
tel: (610) 481-7461; e-mail: sprogepc@airproducts.com
March 2006 |
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