Business
Georgia Gulf Announces Agreement to Acquire Royal Group Technologies
Georgia Gulf Announces Agreement to Acquire Royal Group Technologies.
About this update from Generic Gold Corp.
[{"type":"text","content":"\n\n\n\n\nATLANTA, June 9 /CNW/ - Georgia Gulf Corporation (NYSE: GGC) announced\ntoday a definitive agreement to acquire all of the outstanding common stock of\nRoyal Group Technologies Limited (TSX and NYSE: RYG) for CAD$ 13.00 per share\nin cash. The total transaction is valued at approximately CAD$ 1.7 billion,\nwhich includes payments for Royal Group's equity of CAD$ 1.2 billion and\nassumed net debt of CAD$ 491 million as of March 31, 2006. Based on an\nexchange rate of CAD$ 1.10 to USD$ 1.00, this translates to an offer of USD$\n11.82 per share and a total transaction value of USD$ 1.6 billion.\nRoyal Group is a leading producer of vinyl building and construction\nproducts, which include custom window profiles, decorative moldings, siding,\npipe and fittings and other home improvement products. Royal Group is\nheadquartered in Toronto, Canada with sales primarily in North America.\nGeorgia Gulf manufactures commodity chemicals, vinyl resins and vinyl\ncompounds, which are the basic materials used to manufacture vinyl building\nand construction products such as pipe, siding and windows. The combination of\nRoyal Group's diversified and innovative product portfolio with Georgia Gulf's\nvinyl resins and compounding technology as well as operational efficiencies\nshould result in a stronger, more competitive combined company in the vinyl\nbuilding and construction products industry.\n\"We are very excited about the potential value of this combination for\nour shareholders, customers and employees,\" said Ed Schmitt, Chairman,\nPresident and CEO, Georgia Gulf. \"The integration of the two companies\nprovides an opportunity for improved earnings by leveraging the competitive\nadvantages of each company while creating a foundation for future growth\nopportunities.\"\nCommenting on the acquisition, Lawrence J. Blanford, President and CEO,\nRoyal Group Technologies, said, \"Georgia Gulf is a recognized leader in the\narea of vinyl resins and compounding technology, known for the high quality of\nits products. We believe that the combination of Georgia Gulf and Royal Group\nwill result in a formidable force in the vinyl building products industry.\"\n\"We look forward to the completion of this transaction,\" said Schmitt.\n\"Our current management team has a proven track record of successfully\nintegrating businesses and producing ...