Arch Chemicals, Inc. announced that it has completed its previously announced asset acquisition of the water treatment chemicals business of Advantis Technologies, Inc.. Advantis, a subsidiary of Rockwood Holdings Inc., is a North American manufacturer and marketer of branded swimming pool, spa and surface water treatment chemicals with 2007 sales and EBITDA of $71 million and $12 million, respectively. The transaction includes Advantis manufacturing center and headquarters located in Alpharetta, GA, and leased warehouses and sales offices in Georgia, California and Wisconsin.
The cash purchase price was approximately $124 million, free of debt, based upon an estimate of working capital at closing. This purchase price is subject to a post-closing adjustment based upon final working capital. The acquisition is being financed by borrowings from the Company s revolving credit facility and is expected to be cash and earnings accretive in the first year. The Company expects to realize pretax synergies of approximately $6 million per year from the integration and leveraging of these businesses into Arch.
The cash purchase price was approximately $124 million, free of debt, based upon an estimate of working capital at closing. This purchase price is subject to a post-closing adjustment based upon final working capital. The acquisition is being financed by borrowings from the Company s revolving credit facility and is expected to be cash and earnings accretive in the first year. The Company expects to realize pretax synergies of approximately $6 million per year from the integration and leveraging of these businesses into Arch.
