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Industry News

Lonza Extends Tender Offer to Acquire Arch Chemicals

Source: Author: Date:2011-8-13

Lonza says that its LG Acquisition Corp. subsidiary has extended the expiration date for its previously announced tender offer for all outstanding shares of biocides maker Arch Chemicals (Norwalk, CT), to September 12, 2011. Lonza announced last month that it will acquire Arch in a deal valued at $1.4 billion. Lonza launched the tender for all of Arch’s outstanding shares on July 15 for $47.20/share in cash. The tender offer was initially scheduled to expire on August 11.

“The tender offer has been extended because certain conditions to the tender offer are not expected to be satisfied as of the previously scheduled expiration date. In particular, the tender offer remains subject to receipt of certain regulatory clearances, which Lonza and Arch Chemicals are working to obtain as promptly as practicable. The tender offer has been extended to provide additional time to obtain such regulatory clearances,” Lonza says.

The tender offer may be further extended if conditions to the tender offer remain unsatisfied, Lonza says. The closing of the tender offer is subject to customary terms and conditions, including the tender of more than two-thirds of Arch’s outstanding shares of common stock, the expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period and the consent of certain European-based antitrust regulatory authorities.

The acquisition of Arch was sparked by discussions initiated by Arch about a potential acquisition of Lonza’s biocides business. Those discussions led instead to Lonza’s takeover bid for Arch. Arch had 2010 sales of about $1.4 billion and about $1.2 billion of those were from biocides. Arch employs about 3,000, with 23 manufacturing and research facilities worldwide.