MRO Magazine

Reichhold Completes Asset Purchase

By Business Wire News   



DURHAM, N.C.

Reichhold announced today that the purchase of most of the assets of the U.S. business was completed. This transaction, approved by the United States Bankruptcy Court for the District of Delaware on January 12, 2015, allows Reichhold’s U.S. businesses to successfully emerge from bankruptcy and re-join the rest of the global Reichhold organization.

Concurrent with this purchase, Reichhold completed a debt-for-equity exchange with a group of investors led by Black Diamond Capital Management LLC and including J.P. Morgan Investment Management, Inc., Third Avenue Management LLC, and Simplon Partners LP. As a result of that transaction, Reichhold is now owned by those and other investors.

Reichhold is a privately held entity with a significantly stronger balance sheet, having shed some major legacy liabilities while eliminating the high yield bond debt.

“Today is a great day for our customers, suppliers and employees. Our company has remained intact, and we are better positioned than ever to leverage the strengths of our global business and industry-leading brands to bring new solutions to our customers. We will use our stronger balance sheet to drive operational improvement and to increase profitability. We are better capitalized and have a solid financial foundation for future growth. We have emerged from this process even more capable of developing and delivering the innovative products and services that our customers value. Our new products continue to gain traction in the marketplace, and we continue to deliver innovation which serves unfilled needs in our industry. With the support of our new owners, key stakeholders, advisors and the hard work and commitment of our employees, we are pleased that we have successfully navigated this process in a very short time period while operating our business as usual and without interruption. We are appreciative of all who have supported us during the past few months, and as we begin our 88th year, we are as committed as ever to growing our business and improving our industry,” said John S. Gaither, President and CEO of Reichhold.

Additional information is available on Reichhold’s website at www.Reichhold.com or by calling Reichhold’s Restructuring Hotline, toll-free in the U.S. at (844) 246-9934. For calls originating outside the U.S., please call +1 (919) 558-2300.

About Reichhold

Founded in 1927, Reichhold, with its world headquarters and technology center in Durham, North Carolina, USA, is one of the world’s largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold has manufacturing operations throughout North America, Latin America, the Middle East, Europe and Asia.

About Black Diamond Capital Management, LLC

Black Diamond Capital Management, LLC, is a privately held alternative asset management firm. Black Diamond manages approximately $8 billion in assets across three complementary investment platforms: Control Distressed/Private Equity Funds, a Hedge Fund, and CLOs and other structured vehicles.

About Third Avenue Management LLC

Third Avenue Management LLC is a New York-based investment advisory firm that offers its services to private and institutional clients. Third Avenue adheres to a disciplined bottom-up value investment strategy to identify investment opportunities in undervalued securities of companies with high quality assets, understandable businesses and strong management teams that have the potential to create value over the long term. Third Avenue offers value-oriented strategies through mutual funds, UCITS, separate accounts and alternative investment vehicles.

About Simplon Partners LP

T.A. McKay & Co., Inc., an SEC-registered investment adviser, manages two investment funds focused exclusively on distressed credit obligations. Simplon Partners LP is for US residents and has been in existence since 1989, concentrating on situations with market capitalizations of under $500 million.

Forward-Looking Statement

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 221E of the Securities and Exchange Act of 1934, as amended that are subject to risks, uncertainties and other important factors, including, among other things, the ability of Reichhold to develop, prosecute, confirm and consummate one or more Chapter 11 plans of reorganization, and the potential adverse impact of the Chapter 11 filing on operations, and on relations with customers, suppliers and others. All forward- looking statements reflect Reichhold’s expectations only as of the date of this release and should not be relied upon as reflecting Reichhold’s views, expectations, or beliefs at any date subsequent to the date of this release.

Reichhold
Joan Grace, 919-990-7876, joan.grace@reichhold.com

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