Detrex Corporation Announces Definitive Agreement to Sell Harvel Plastics Subsidiary to Georg Fischer AG
(Southfield, MI) - Detrex Corporation (DTRX.PK) has entered into a definitive agreement to sell its subsidiary, Harvel Plastics, Inc. of Easton, PA to Georg Fischer AG for approximately $50 million in cash. Detrex Corporation's share of the after-tax sale proceeds is estimated to be $30 million. The transaction is expected to close in January 2012.
Harvel is a leading North American manufacturer of high quality PVC and CPVC piping, duct systems and other specialty shapes products. Georg Fischer is a global industrial products company and leader in piping systems. Georg Fischer plans to integrate Harvel into its Piping Systems business unit.
Tom Mark, Detrex's President and CEO said that "the sale of Harvel is a strategic move to capture the value of this fine company as market conditions have begun to favor full scope global suppliers such as Georg Fischer. The sale serves to strengthen Detrex's financial condition, maximizes shareholder value and better positions Detrex as a specialty chemicals company."
About Detrex Corporation
Founded in 1925, Detrex Corporation is a manufacturer of products for the global industrial manufacturing and commercial construction markets through its subsidiaries Elco Corporation and Harvel Plastics. Elco is a leading manufacturer of high performance specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid. Harvel makes and markets high quality PVC and CPVC products such as piping, duct systems and other specialty forms for primarily industrial applications.