Hercules Inc. will sell its minority position in CP Kelco to J.M. Huber Corp. The transaction is subject to regulatory approval and is expected to close during the first quarter of this year.
“In terms of our day-to-day operations, this announcement and resulting sale of Hercules’ minority share position will have virtually no impact on us and will be completely transparent to our customers, suppliers and employees,” commented Robert Toth, president and chief executive officer, CP Kelco. “It is a financial transaction between Hercules and Huber which we believe is a direct result of continued improved performance that makes CP Kelco an attractive investment.”
Formed in 2000 by the Copenhagen Pectin/Food Gums division of Hercules Inc. and the Kelco Biopolymers business of Monsanto Co., CP Kelco’s principal shareholders are currently Lehman Brothers Merchant Banking Partners II LP and Hercules Inc. Lehman Brothers will remain the primary and controlling shareholder when the transaction is approved, executives said.