Hercules completes $1.8B BetzDearborn division sale to GE

WILMINGTON, DE — Hercules Inc. (NYSE: HPC) has completed the $1.8 billion sale of the Water Treatment business of its BetzDearborn Division to GE Specialty Materials, Wilton, CT, a unit of General Electric Co. (NYSE: GE). The new business will be known as GE Betz, Trevose, PA, a global service company providing engineered chemical treatment of water and process systems in industrial applications. George Oliver was named GE Betz vice president and general manager. He was previously the vice president and general manager of GE Engine Services, the company said. Hercules will have an agreement with GE to distribute and service BetzDearborn's water treatment products to the pulp and paper industry, officials said. The purchase price is $1.8 billion in cash, with net after-tax proceeds of approximately $1.67 billion, according to a company statement. Hercules will use proceeds from the divestiture to reduce debt and serve as collateral for outstanding letters of credit. "This sale marks a significant achievement in our ongoing program to improve the company's financial and operating condition," said Hercules Chairman and CEO William H. Joyce, of Hercules. Total revenues will be approximately $1.7 billion, according to Hercules, which manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets.