WILMINGTON, DE, JANUARY 4, 2006 . . . Hercules
Incorporated (NYSE: HPC) today announced an agreement to
purchase the guar and guar derivative manufacturing business
of Benchmark Polymer Products, L.P., a subsidiary of
Benchmark Performance Group, Inc. (“Benchmark”). Under terms
of the agreement, Aqualon, a business unit of Hercules
Incorporated, will acquire the Dalton, Georgia production
facility for $20 million plus a provisional future earn out
and receive an equity position in Benchmark.
Aqualon currently supplies a portfolio of water soluble
polymers and technology to the global oil and gas industry
for applications in drilling, cementing, completion, and
fracturing. “This investment is consistent with Aqualon’s
strategy to expand its presence in the energy industry and
leverage the full portfolio of Aqualon products,” said Craig
Rogerson, President and Chief Executive Officer of Hercules.
“The oil and gas industry and in particular, the stimulation
of natural gas wells via hydraulic fracturing, is projected
to continue a strong, long-term growth trend.”
“As a result of this transaction, Aqualon also expects to
increase capacity utilization of its existing guar and guar
derivative production facility in Kenedy, Texas,” added Mr.
Rogerson. In addition to the oil and gas sector, Aqualon’s
guar gum and guar derivatives are widely used in food,
personal care, and industrial markets.
Benchmark Performance Group, headquartered in Houston,
Texas, is a leading developer and supplier of specialty
chemicals for the oil and gas pressure pumping services
industry and has developed innovative processes for the
manufacture and delivery of the polymer slurries used in oil
and gas well fracturing applications. “We see significant
value creation for both companies in this transaction,” said
Wayne Kinsey, Benchmark’s President and Chief Executive
Officer. “We know Aqualon has the ability and expertise to
manufacture the dry polymers typically used in fracturing
fluids. When you combine those capabilities with our
expertise in polymer slurry manufacture and delivery, we’ll
be even better positioned to bring the pressure pumping
services companies both the products they need today and the
products they’ll want tomorrow.” For more information, visit
the Benchmark website at www.benchmark-research.com.
Closing is expected to occur in January of 2006, subject to
a number of non-regulatory conditions.
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Hercules manufactures and
markets chemical specialties globally for making a variety
of products for home, office and industrial markets. For
more information, visit the Hercules website at www.herc.com.
This news release includes
forward-looking statements, as defined in the Private
Securities Litigation Reform Act of 1995, reflecting
management's current analysis and expectations, based on
what management believes to be reasonable assumptions.
Forward-looking statements may involve known and unknown
risks, uncertainties and other factors, which may cause the
actual results to differ materially from those projected,
stated or implied, depending on such factors as: ability to
generate cash, ability to raise capital, business climate,
business performance, economic and competitive
uncertainties, higher manufacturing costs, reduced level of
customer orders, changes in strategies, risks in developing
new products and technologies, environmental and safety
regulations and clean-up costs, foreign exchange rates, and
adverse legal and regulatory developments. Accordingly,
there can be no assurance that the Company will meet future
results, performance or achievements expressed or implied by
such forward-looking statements. As appropriate, additional
factors are contained in other reports filed by the Company
with the Securities and Exchange Commission. This paragraph
is included to provide safe harbor for forward-looking
statements, which are not generally required to be publicly
revised as circumstances change, and which the Company does
not intend to update.
