New Products Offer Innovative Technology and Broaden Access to Additional Markets
LEHIGH VALLEY, Pa. (April 3, 2006) – Air Products (NYSE: APD) today announced that it completed the acquisition of Tomah3 Products of Milton, Wis., for approximately $115 million in cash on March 31. The acquisition, initially announced on March 22, increases the size of Air Products' Performance Materials business and will capitalize on the company's surface science expertise and high growth market opportunities. Tomah produces specialty surfactants and processing aids primarily for growth segments of the institutional and industrial cleaning, mining and oil field industries, among others.
Through a commercial and product development relationship formed in 2004, Air Products and Tomah have been developing customized offerings for high growth segments of their target industries that benefit from the unique combinations of the companies' technologies. These offerings are increasingly attractive for customers seeking environmental and productivity benefits. The Tomah acquisition reflects Air Products' Performance Materials strategy to expand its presence in profitable market segments where it can build on its surface science expertise and leverage its global scope and supply chain capabilities. Tomah's product lines, production capabilities and market channels support this strategy.
"Tomah's product mix complements Air Products' specialty surfactant and specialty amine offerings with new product applications and new market 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 market segments in coatings, inks and adhesives, and provide access to exciting, high growth segments that are well served by Tomah," said Wayne Mitchell, vice president and general manager of Air Products' Performance Materials Division.
In addition to specialty surfactants, Air Products' Performance Materials growth platform, with sales of approximately $600 million in FY2005, includes epoxy and polyurethane additives, specialty amines 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 strong growth and sustainable returns above their cost of capital.
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, and fuel and 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, and with sales of $73 million in 2005, Tomah 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.
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. |
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