OMNOVA Solutions Sells U.K.-Based Muraspec Wallcovering Business to a2e Venture Catalysts Limited
FAIRLAWN, Ohio, March 6, 2012 /PRNewswire/ -- OMNOVA Solutions (NYSE: OMN) today announced that it has sold its U.K.-based Muraspec commercial wallcovering business to affiliates of a2e Venture Catalysts Limited, and its principal Amin Amiri based in Manchester, United Kingdom. Muraspec produces and distributes wallcoverings and other interior surfacing products, primarily to commercial markets in the U.K., Europe and the Middle East.
This stock transaction involves the entire Muraspec business including all brands, a plant in Kent, U.K., a design and distribution center outside London, plus sales offices in Paris, Warsaw and Dubai. Muraspec has approximately $40 million in sales. OMNOVA operated Muraspec as a stand-alone business.
"The sale of our European wallcovering business allows us to focus our resources on our global Performance Chemicals business as well as the coated fabrics, laminates and performance films product lines within Decorative Products that offer greater global growth potential," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer. "Due to the very different design preferences of countries and cultures throughout the world, the global commercial wallcovering market tends to require a regional focus, which a2e will be in a better position to serve.
"I want to thank each of our associates in the Muraspec business for their dedication and service to the Company. Their efforts have built a strong reputation for the Muraspec name and its related brands. We wish them continued success," McMullen said.
Under key terms of the transaction, OMNOVA will receive approximately US$7.0 million in cash and notes.
This announcement follows the December 2011 sale of certain assets of OMNOVA's North American commercial wallcovering business to J. Josephson. Going forward, OMNOVA's decorative products portfolio will include coated fabrics, laminates, performance films, digital wall murals and laminated surfaces for the interior construction systems market.
This press release includes "forward-looking statements" as defined by federal securities laws. These statements, as well as any verbal statements by the Company in connection with this press release, are intended to qualify for the protections afforded forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectation, judgment, belief, assumption, estimate or forecast about future events, circumstances or results and may address business conditions and prospects, strategy, capital structure, sales, profits, earnings, markets, products, technology, operations, customers, raw materials, financial condition, and accounting policies, among other matters. Words such as, but not limited to, "will," "may," "should," "projects," "forecasts," "seeks," "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "optimistic," "likely," "would," "could," and similar expressions or phrases identify forward-looking statements.
All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in business generally and the markets in which the Company operates or proposes to operate. Other risks and uncertainties are more specific to the Company's businesses including businesses the Company acquires. The occurrence of such risks and uncertainties and the impact of such occurrences is often not predictable or within the Company's control. Such impacts could adversely affect the Company's results and, in some cases, such effect could be material.
All written and verbal forward-looking statements attributable to the Company or any person acting on the Company's behalf are expressly qualified in their entirety by the risks, uncertainties, and cautionary statements contained herein. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation, and specifically declines any obligation other than that imposed by law, to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Risks and uncertainties that may cause actual results to differ materially from expected results include, among others: economic trends and conditions affecting the economy in general and/or the Company's end-use markets; prices and availability of raw materials including styrene, butadiene, vinyl acetate monomer, polyvinyl chloride, acrylonitrile, acrylics and textiles; ability to increase pricing to offset raw material cost increases; product substitution and/or demand destruction due to product technology, performance or cost disadvantages; customer concentration and loss of a significant customer; supplier, customer and/or competitor consolidation; customer credit and bankruptcy risk; ability to successfully develop and commercialize new products; a decrease in regional demand due to reduced customer production or increased import competition; risks associated with international operations including political unrest, fluctuations in exchange rates, and regulatory uncertainty; ability to successfully implement productivity enhancement and cost reduction initiatives; risks associated with chemical manufacturing and with acts of war, terrorism, natural disasters or accidents, including fires, floods, explosions and releases of hazardous substances; unplanned full or partial suspension of plant operations; ability to comply, and cost of compliance with legislative and regulatory changes, including changes impacting environmental, health and safety compliance and changes which may restrict or prohibit the Company from using or selling certain products and raw materials; losses from the Company's strategic alliance, joint venture, acquisition, integration and operational activities; rapid inflation in health care costs; loss of key employees and inability to attract and retain new key employees; prolonged work stoppage resulting from labor disputes with unionized workforce; changes in, and significant contributions required to meet, pension plan funding obligations; attacks on and/or failure of the Company's information systems; infringement or loss of the Company's intellectual property; litigation and claims against the Company related to products, services, contracts, employment, environmental, safety, intellectual property and other matters; adverse litigation judgments or settlements; absence of or inadequacy of insurance coverage for litigation judgments, settlements or other losses; stock price volatility; availability of financing at anticipated rates and terms; and loan covenant default arising from substantial debt and leverage and the inability to service that debt, including increases in applicable short-term or long-term borrowing rates.
For further information on risks and uncertainties, see the Company's Form 10-K and 10-Q filings with the Securities and Exchange Commission.
OMNOVA Solutions is a technology-based company with fiscal 2011 pro forma sales of $1.2 billion and a global workforce of approximately 2,300. OMNOVA is an innovator of emulsion polymers, specialty chemicals, and decorative and functional surfaces for a variety of commercial, industrial and residential end uses. Visit OMNOVA Solutions on the internet at www.omnova.com.
SOURCE OMNOVA Solutions