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The General Chemical Group Announces Two Acquisitions and Authorizes Stock Repurchase

17 February 1998

The General Chemical Group Announces Two Acquisitions and Authorizes Stock Repurchase

    HAMPTON, N.H., Feb. 17 -- The General Chemical Group Inc.
has agreed to purchase Reheis, Inc., a producer of specialty
chemicals, and has purchased Sandco Automotive Ltd, a manufacturer of
automobile engine parts.
    Reheis, a privately held company headquartered in New Jersey with 1997
sales of about $60 million, is the world's leading producer and supplier of
the active chemical ingredients in antiperspirants and over-the-counter
antacids as well as supplier of pharmaceutical intermediates and other
products.  With a history dating back to the 1920s, Reheis is today a
recognized research and market leader supplying many of the premier consumer-
product and pharmaceutical companies in more than 50 countries.
    Sandco, based in Waterdown, Ontario, is a manufacturer of engine parts for
the North American automobile industry and its aftermarket.  With 1997 sales
of approximately $10 million in United States dollars, Sandco is an innovative
and key supplier of rocker arms and roller followers to selective customers
and the business is an attractive complement with Toledo Technologies.
    "The purchases of Reheis and Sandco will accelerate the momentum we have
developed in expanding our derivative products and services as well as our
manufacturing business," said Richard R. Russell, president and chief
executive officer of General Chemical.  "With Reheis, we are acquiring a
market leader that has a strong record of growth and new-product development.
We are especially pleased that Philip White, president and chief executive
officer of Reheis since 1986, together with the rest of the management team,
have agreed to remain in their positions, where they will continue to build
upon the company's history of innovation, customer satisfaction and success,
and maintain its leading market presence."
    Terms of the transactions were not disclosed.  The agreement between
General Chemical and Reheis is subject to certain conditions, including
regulatory approvals.
    Separately, the Board of Directors of The General Chemical Group Inc. has
authorized the repurchase from time to time depending on market conditions of
up to 2.0 million shares of the company's common stock, in the open market or
in privately negotiated transactions.
    The General Chemical Group is a leading diversified producer of chemicals,
related services and manufactured products.

SOURCE  The General Chemical Group, Inc.