06.02.2015 • NewsW. R. GraceDede Willams

W.R. Grace to Split Into Two Parts

In a transaction that will be tax free for shareholders, W.R. Grace plans to split into two companies. The move comes a year after the specialty chemical producer emerged from one of the longest bankruptcies, in US history,which was punctuated by protracted negotiations with creditors to settle claims related to asbestos.

Gracwfiled for Chapter 11 protection in 2001 after a slew of lawsuits related to asbestos used in its products. Grace hopes the the split will improve its strategic focus, simplify operations and allow for better use of capital.

One of the new companies, to be headed by Grace's current chairman and CEO Fred Festa, will consist of businesses with sales of $1.8 billion and activities in petrochemicals, personal care and rubber. The other will comprise Grace's specialty construction chemicals and specialty building materials unit, and have sales of about $1.5 billion.

"I also believe the split will open up opportunities around the materials space, around the silica space and other inorganic materials," Festa told journalists in a conference call.

The Grace CEO also reported better-than-expected fourth-quarter adjusted earnings, raised its forecast for 2015 earnings per share, and said it would buy back $500 million of shares.

 

Free Expert Insights

Dual‑Targeting Breakthroughs
Advancements in Bispecific Antibody Development

Dual‑Targeting Breakthroughs

Unlock the latest breakthroughs in bispecific antibody development! Download Wiley’s free Expert Insights eBook to explore cutting-edge dual-targeting strategies, advanced purification methods, and bioanalytical technologies transforming immunotherapy and cancer treatment.

Innovation Pitch

The Start-up Platform for Chemistry & Life Sciences
Discover Tomorrow’s Innovators

The Start-up Platform for Chemistry & Life Sciences

CHEManager Innovation Pitch supports innovation in the chemistry and life sciences start-up scene. The platform allows founders, young entrepreneurs, and start-ups to present their companies to the industry.

most read

Photo
28.07.2025 • NewsChemistry

VCI Welcomes US-EU Customs Deal

The German Chemical Industry Association (VCI) welcomes the fact that Ursula von der Leyen, President of the European Commission, and US President Donald Trump have averted the danger of a trade war for the time being.