CLEVELAND, Oct. 2 /PRNewswire-FirstCall/ -- OM Group, Inc. today announced that it has completed its previously announced acquisition of Borchers GmbH, a leading European-based specialty coatings additive supplier, for approximately euro 12.7 million in cash, subject to a final working capital adjustment. Plans call for the Borchers operations to be integrated into OMG's existing Advanced Organics business.
"Borchers is highly complementary to our advanced coatings business, as it extends our current product portfolio and broadens our geographic reach," said Joseph M. Scaminace, chairman and chief executive officer. "Furthermore, the addition of this highly respected technology leader keeps with our long-range growth strategy, which includes continued product innovation as well as tactical and strategic acquisitions."
With 2006 revenues of approximately euro 36 million, Borchers offers products to enhance the performance of coatings and ink systems -- from the production stage through to customer end use. The products improve processing options, free-flowing properties, consistency and gloss, control surface drying and drying-out properties, enhance rheology and dispersency, optimize resistance to the most diverse range of stresses and shape the environmental compatibility of contemporary surface hardening.
ABOUT OM GROUP, INC.
OM Group is a leading, vertically integrated international producer and marketer of value-added, metal-based specialty chemicals and related materials. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia and Africa. For more information, visit the company's Web site at http://www.omgi.com/.
For more information, please contact: Greg Griffith, vice president, strategic planning, development and investor relations at +1-216-263-7455
FORWARD-LOOKING STATEMENTS
The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: the direction and pace of our strategic transformation, including our use of proceeds from the sale of our Nickel business on March 1, 2007 and identification of potential acquisitions; the operation of our critical business facilities without interruption; the speed and sustainability of price changes in cobalt; the potential for lower of cost or market write-downs of the carrying value of inventory necessitated by decreases in the market price of cobalt or the selling prices of the company's finished products; the availability of competitively priced supplies of raw materials, particularly cobalt; the risk that new or modified internal controls, implemented in response to the company's examination of its internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, are not effective and need to be improved; the demand for metal-based specialty chemicals and products in the company's markets; the impact of environmental regulations on our operating facilities and the impact of new or changes to current environmental, health and safety laws on our products and their use by our customers; the effect of fluctuations in currency exchange rates on the company's international operations; the effect of non-currency risks of investing and conducting operations in foreign countries, including political, social, economic and regulatory factors; the effect of changes in domestic or international tax laws; and the general level of global economic activity and demand for the company's products.
