KKR's $1.79 billion deal to purchase a Hoeschst unit is being renegotiated

Article Abstract:

Kohlberg Kravis Roberts and Company L.P. is renegotiating its $1.79 bil deal to buy paint manufacturer Herberts GmbH from Hoechst AG, and may obtain a lower price. Some sources said Credit Suisse First Boston had committed to financing the purchase for KKR. KKR and Hoechst announced the agreement in principle in Aug 1998, but economic turmoil has raised questions about financing and valuation, and negotiations have continued through two self-imposed deadlines. Collapse of the transaction would weaken KKR's attempt to expand into Europe, which accounts for 80% of Herberts' 2.7 bil German marks in sales.

Comment:

Is renegotiating its $1.79 bil deal to buy paint manufacturer Herberts Gmbh from Hoechst AG

Germany, Company Planning/Goals, Paints & Allied Products, Paint and Coating Manufacturing, Investment Companies, Open-End Investment Funds, Coatings, Paints, Herberts GmbH, Kohlberg Kravis Roberts & Co., Hoechst AG

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Hercules to acquire BetzDearborn

Article Abstract:

BetzDearborn, which is a speciality-chemicals company based in Trevose, Pa., will be acquired by Hercules Inc. for $2.4 billion, including the assumption of $700 million in debt. Industry analysts have said that Hercules, which will have $3.5 billion in annual sales following the acquisition, has paid about 10.6 times the 1997 cash flow of BetzDearborn. The company is planning at least $100 million in cost cutting efforts, according to analysts, through combining sales and administrative offices and other measures.

Comment:

Will acquire the speciality-chemicals company for $2.4 bil, including $700 mil in debt

Chemicals & Allied Products, Chemical Manufacturing, Other Commercial and Service Industry Machinery Manufacturing, Licensing/Sales Agreements, Water & Waste Treatment Equip, Chemicals, Hercules Inc., Betzdearborn Inc.

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