hoechst to acquire celanese - polyester film industry
By JONATHAN P. HICKSNOV.
1986 this is a digital version of an article from The Times Print Archive, before it starts online in 1996.
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The merger will form Hoechst a, the world's largest chemical company. G.
West Germany said yesterday it would buy New York-
The company bought Celanese for $2. 84 billion.
Celanese is second in the country-
Man's biggest producer
Mainly made of polyester and acetate.
Although the company did not actually carry out consumer marketing, its products are widely used in a variety of items from clothing linings to tire ropes, paint and home furniture.
The deal will be the biggest acquisition by West German buyers of any American company and will give European producers a deeper foothold in the country's lucrative market.
It reflects the strength of West mark.
Dubenselan and Hoechst, with the highest combined sales, have a total of $1985 in sales. 6 billion.
This will allow the combined enterprise to surpass E. I.
DuPont reported sales of $16.
6 billion last year.
The agreement between Celanese and Hoechst will combine the second of this country-and fourth-
They are the largest fiber manufacturers.
Fiber is the intermediate material for making items such as carpets, clothes and furniture.
The combined company will surpass DuPont for $2.
Fiber Industry 5 billion.
This prospect raises questions from some analysts about whether the merger will have antitrust issues with the Federal Trade Commission and the Justice Department.
Celanese's official comment from Celanese, vice president, said, "Our lawyers are sure that the merger will take place.
"Under the terms of the offer acquisition, the subsidiary of West Germany's concern company, Hoechst Corporation of the United States, will pay $245 in cash for all common shares of Celanese.
Shares on the New York Stock Exchange rose $24 to close at $242 yesterday. 50.
Quotation is expected to begin today.
The board of directors of both companies approved the acquisition.
Dieter zur Loye, president and chief executive of Hoechst in the United States, said: "celanese and Hoechst practice complementary chemical categories that are very suitable . ".
"Celanese will provide Hoechst with a stronger business in this largest industrial market.
We see the main benefits of combining Hoechst's research strength with Celanese.
Most of the stocks that are required to be quoted depend on at least 51% of the issued Celanese shares. N. Y.
TimesAmerican Hoechst said it would buy all outstanding shares of Celanese convertible preferred shares for $172.
40 shares and 7% second preferred shares, $102 per share.
This is the latest in a wave of Europeans buying American chemical companies.
Last year, basf a, another large chemical company in western Germany. G.
For $1 billion, Inmont Corporation, India's largest printing and packaging ink manufacturer, was purchased from United Technologies.
Britain's biggest concern Imperial Chemical Industry bought the sliding paint and resin business for $0. 58 billion in August.
Strong strength in the field of specialty chemicals, such as pharmaceutical or new plastic materials.
Its profits are high this year.
Thanks to strong export growth with the help of a weak dollar, analysts predict revenue will reach a record 1986.
In the first nine months of this year, Celanese's net income was $0. 156 billion, or $13.
$90 per share, up 36% year on year, although sales fell to $2.
18 billion from $2. 28 billion.
AdvertisementHoechst, like other large West German chemical companies, has recently experienced its biggest revenue growth since the medium term. 1970's.
However, the Germans did not forget the industrial downturn in the early 1980s S, and they have already started acquisitions in Germany and overseas, focusing on the acquisition of chemical products in the United States.
Analysts say their goal is to avoid a recession by gaining a place in a market that is expected to grow. ''The U. S.
Christopher H. said: "The market has long been a good growth area, and Europeans have been eager to enter this area . "
Willis, analyst at E. F.
"They all have a strong position in the fiber industry and it seems to be a good match.
The value of the dollar is 20 to 30% lower than a year ago, which is particularly attractive.
"Like other German chemical companies, Hoechst has maintained a huge share in bulk chemicals, but in the past few years, it has begun to reflect in the concerns of the United States that special products are highlighted, leaving cheaper bulk production to competitors in Latin America, Asia and Eastern Europe.
Headquarters location UnchosenAmerican Hoechst has headquarters in Somerville, New YorkJ.
, While Celanese rents six floors in 44-
Spanish architecture at 1211 Americas Avenue, Manhattan. Mr.
The question of where the combined company's headquarters is based "is still under discussion", Mr. Shepp said ".
The two companies have worked together for 25 years on various joint ventures, technology exchanges and licensing agreements.
In addition, Hoechst acquired Celanese's polyester film business for $95 million in 1979.
Hoechst bought Hercules Inc. last year.
Interest in 74% of Cape industrial plants in Wilmington, New YorkC.
Amount of payment not disclosed.
At a glance: HOECHST the company all of tens of thousands of dollars amount except per share data Three a month end June 30, 1986 1985 income $4,312,000 $4,991,000 of net income. a. n. a.
Earnings per share are $4. 37 $3.
For 73 years as at December.
31 1985 1984 income 14,531,000 dollars Net income 14,101,000 dollar earnings per share 500,000 460,000 dollars. 24 $11.
Contribution of $84 main business to 1985 revenue chemicals, other products 32% pharmaceutical 16% joint ventures, cosmetics, ceramics 13% plastics, wax 12% fibers, fiber materials 10% agriculture $ 7% Total assets, December.
1985 Current assets $9,309,000 6,500,000 current liabilities 2,313,000 long-
Stock price 52-1,235,000week range n. a.
At a glance: in addition to the data per share as of three months, all the dollar amounts of celanese corporation are thousands of dollars.
30 1986 1985 income 693,000 dollars Net income 758,000 dollar earnings per share 50,000 47,000 dollars 4. 37 $3.
For 73 years as at December.
31 1985 1984 income 3,046,000 dollars Net income 3,328,000 dollar earnings per share 178,000 161,000 dollars. 70 $10.
The 87 major business contributions of the revenuesA version in 1985 of this article will be published in November 4, 1986 under the title: HOECHST acquisition of CELANESE.