January 9, 2012
Detrex Corporation Announces the Closing of the Sale of its
Harvel Plastics Subsidiary and Declares a Special Dividend
SOUTHFIELD, MI – January 9, 2012 - Detrex Corporation (DTRX.PK)
today announced that it has closed, effective January 1, 2012, the
previously announced transaction 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 proceeds are subject to adjustments which will be determined
when certain sales conditions are fulfilled. It is anticipated that
the proceeds will be used to fund or reduce current Company
obligations, and will place the Company in a strong financial
condition going forward.
The Company also declared a special dividend of $2.00 per share to
its shareholders. The dividend is payable on January 30, 2012 to
shareholders of record as of January 20, 2012.
“The sale of Harvel allowed us to maximize its value for
shareholders, while also focusing Detrex on the future and our
engine for growth – The Elco Corporation,” said Detrex President and
CEO Tom Mark. “We have a strong and profitable business with Elco
and look forward to applying additional resources to the growing
opportunity in chemicals and additives.”
About Detrex Corporation
Founded in 1925, Detrex Corporation through its subsidiary The Elco
Corporation is a leading manufacturer of high performance specialty
chemicals including additives for industrial petroleum products and
high purity hydrochloric acid.
Forward Looking Statements
Statements included in this press release that are not historical in
nature are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 (the “1995 Act”).
The words “believe,” “expect,” “anticipate,” “estimate,” “guidance,”
“target” and similar expressions identify forward-looking
statements. The Company cautions readers that forward-looking
statements are subject to certain risks and uncertainties, which
could cause actual results to differ materially from those projected
in the forward-looking statements. Certain risks and uncertainties
are identified from time to time in the Company’s reports. Some
factors that could cause results to differ materially from those
projected in the forward-looking statements include: market
conditions, environmental remediation costs, pension expense and
funding requirements, liquidation value of assets, and marketability
of real estate and the market value and future liquidity of Detrex
stock. The Company claims the protection of the safe harbor for
forward-looking statements contained in the 1995 Act.