Petroferm Inc. Indicates Interest in Acquiring Kyzen Corporation
FERNANDINA BEACH, Fla., Apr 4, 2000 (BUSINESS WIRE) -- Petroferm Inc., a
diversified chemical company and leading supplier of industrial cleaning agents,
announced today its interest in purchasing all of the outstanding shares of
Kyzen Corporation (OTCBB:KYZN), a Nashville, Tennessee-based provider of
precision cleaning products. Petroferm offered to pay $1.00 in cash per Kyzen
share, with a potential increase subject to the results of customary due
diligence.
The $1.00 per share offer price represents a 68% premium to yesterday's closing
price and an approximate 47% premium to the average closing price of Kyzen
shares for the 45 trading days preceding the offer. Petroferm emphasized to
Kyzen management its desire to complete a negotiated transaction with the
support of the Kyzen Board of Directors. However, Kyzen's Board of Directors has
rejected the Petroferm offer.
Geoffrey R. Cross, President of Petroferm, believes that the combination of
Petroferm and Kyzen "presents an excellent business fit in terms of
manufacturing capabilities, distribution and the ability to service effectively
the companies' combined customer base." Cross said, "In light of its limited
revenue base and narrow product focus, Kyzen is at an increasingly serious
operating disadvantage as a stand-alone company, particularly as the rate of
growth in its cleaning business continues to diminish." Further, Cross believes
Kyzen shareholders are at an increasing disadvantage as Kyzen's operating and
competitive environment becomes more difficult.
Petroferm is concentrating its efforts on the development and expansion of its
industrial products businesses and recently closed on the sale of its cosmetics
specialty ingredients division to the BFGoodrich Company to facilitate this
goal. Petroferm (www.petroferm.com) was founded in 1981 and today serves
customers in a variety of industries and more than 50 countries. Addition of
Kyzen's industrial cleaning products would further enhance Petroferm's current
product offering and provide customers added value and convenience.
An online forum has been established at www.sellkyzen.com for Kyzen shareholders
to express and exchange their views regarding Petroferm's plans.
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
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CONTACT: Petroferm Inc., Fernandina Beach
Craig C. Hood, 904/277-5227
newsrelease0404@aol.com
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