Rhein Chemie Corporation to Buy Elastochem, Inc., Assets

22 September 1999

Rhein Chemie Corporation to Buy Elastochem, Inc., Assets; Move Promises to Benefit Rubber Customers with Broader Products and Services

    TRENTON, N.J. and CHARDON, Ohio--(AutomotiveWire)--Sept. 21, 1999--Rhein Chemie Corporation, Trenton, NJ and Elastochem, Inc., announced today that they have reached an agreement through which Rhein Chemie Corporation will acquire the assets of Elastochem, Inc., Chardon, OH. Rhein Chemie manufactures additives and speciality products for the rubber, plastics and polyurethane and lubricant oil industries. Elastochem is a leading supplier of customized active ingredient preparations and chemical specialities for use primarily by the rubber industry. Elastochem's core activities consist of developing and producing customized multiple ingredient dispersions of chemicals in pre-weighed packages in tailor-made chemical mixing, dispersions and packaging for the polymer industry.
    This step will broaden Rhein Chemie's product and service capabilities in additives for the rubber industry in North America. These products are used to manufacture technical rubber goods, automotive products, wire and cable, tires and shoe soles. Terms of the agreement were not disclosed. The completion of the acquisition is subject to the necessary approvals of the U.S. antitrust authorities.
    "With both companies' high quality standards, complementary products, excellent technological capabilities and strong commitment to the current and future needs of the rubber industry, they will fit well together," said Wolfgang Kober, President, Rhein Chemie Corporation. "This foundation will let us combine the strengths of the two companies and offer the marketplace a broader product line in combination with superior service."
    Clifford C. "Skip" Martin, President, Elastochem, Inc. said, "With Rhein Chemie's involvement and support there will be excellent opportunities to enhance the global presence of Elastochem's service-products significantly. I am convinced that this will benefit our customers, our employees and the industry."
    Rhein Chemie Corporation is a wholly owned subsidiary of Bayer Corporation, Pittsburgh, Pennsylvania. Globally, Rhein Chemie operations encompass 120 countries with international headquarters based in Mannheim, Germany. According to Horst Syrowatka, Managing Director, Rhein Chemie Rheinau GmbH, Mannheim and Chairman of the Board, Rhein Chemie Corporation, "The purchase of Elastochem is a major step forward in continuing our efforts to service our customers on a global basis. You can see further evidence of this world-wide customer focus in the opening of our new plant in China this past summer."
    Rhein Chemie Corporation manufactures and sells additives and specialty products for the rubber, plastics and lubricant oil industries with a workforce of 140 employees. The company`s headquarters and production facilities are located in the Trenton, New Jersey area.
    Elastochem is headquartered in Chardon, Ohio and has 180 employees. Elastochem was founded in 1979 and has evolved into a leader in chemical dispersions for the North American rubber industry.