Johnson Wax Professional To Acquire DiverseyLever

Johnson Wax Professional announced today that it has signed a definitive agreement to acquire DiverseyLever, Unilever’s institutional and industrial cleaning business. The acquisition, subject to regulatory approval will be completed in early 2002.

The consolidation of Johnson Wax Professional and DiverseyLever is the largest ever in the industrial and institutional market, according to the companies. To complete the deal, Johnson Wax Professional will compensate Unilever with a combination of cash and a note and a one-third interest in the combined company. Unilever has placed a valuation of approximately $1.6 billion on the transaction. Additionally, the agreement provides for Unilever’s full exit from the combined business after five years.

The combined company will be led by a management committee that includes Johnson Wax Professional’s chairman, S. Curtis Johnson and its president and chief executive officer, Gregory E. Lawton. Other members of the management committee will include JoAnne Brandes, chief administrative officer and general counsel; Michael J. Bailey, chief financial officer (both are officers of Johnson Wax Professional) and Cetin Yuceulug, president DiverseyLever. Mr. Yuceulug will serve as a special advisor during the transition to new ownership and will retire from Unilever in July 2002. The company’s global headquarters will remain in Racine, WI.

“We are extremely excited about the long-term strategic benefits from this transaction,” Mr. Lawton said. “Combining our strengths with those of DiverseyLever will result in a company that has the size, strength and geographic reach to compete anywhere in the world with anyone in the industry. Our complementary product platforms-Johnson Wax Professional’s expertise in housekeeping and floor care and DiverseyLever’s strengths in warewashing, laundry and food processing and sanitation-will significantly enhance our offering.”

“This is indeed an historic occasion for Johnson Wax Professional,” said Mr. Johnson. “While this transaction represents by far the largest investment we’ve ever made, it truly is an investment in our future, one that will position us for long-term growth and profitability.

“An important factor for us is that our companies share similar values and cultures, emphasizing the goodwill of our people,” he added. “Our common commitment to customers and to employees, defined by the principles each company has established and practiced over the years, will be the foundation for a successful integration.”

Niall FitzGerald, chairman, Unilever Plc., said “This is an excellent strategic move for Unilever and one that is fully in line with our Path to Growth strategy, a key element of which is to focus resources-money, people, innovation-on a reduced number of core consumer brands. We are delighted the Johnson and DiverseyLever businesses are coming together. They complement each other’s strengths extremely well.”

DiverseyLever employs about 12,000 in 60 countries. Its sales for the 12 months ended June 30 were $1.5 billion. Johnson Wax Professional has 3,800 employees. The privately-held company had sales in excess of $1billion for the year ended June 30, according to industry sources. Ecolab, with sales in excess of $2.2 billion for the year ended Dec. 31, 2000, is the current leader in the I&I segment.