Orica Acquires Woodcare Business

16th July, 1998

Orica Limited announced today it had purchased assets of the retail businesses of Maxwell Chemicals in Australia and Peterson Chemicals in New Zealand from Ecolab of the United States.

The acquisition by Orica (formerly ICI Australia) comprises the purchase of the strong Feast Waston and Intergrain wood finish brands and other assets relating to the sale and distribution of these products as well as the Sealwall and Ferropro range of ancillary paint products. A number of other minor retail hardware and automotive product brands will also be acquired.

The business acquired has combined sales of about $20 million a year and in acquiring the assets Orica has offered employment to 18 people.

Mr Martin Ward, Orica general manager for Woodcare said: "We plan to merge sales, marketing and distribution activities of the existing Woodcare business, which markets the Cabot’s brand of timber finishes, with the acquired business. There are significant synergy benefits from this move.

"This business requires people who truly understand the unique requirements of timber as a coatings substrate, and this merger will bring together many of the country’s leading technical, marketing and sales people in this area.

"The merger will provide for a highly competitive Woodcare business with technical, marketing and operational advantages that will flow from being solely dedicated to the specialist field of premium timber finishes.

"The Feast Watson and Intergrain brands complement the Cabot’s brand and now give Orica a total range of wood care products which service both retail and trade customers."

Orica managing director and chief executive officer Philip Weickhardt said: "This acquisition is totally consistent with Orica’s strategy of actively growing its already strong Consumer Products business which includes the Dulux, Berger, Cabot’s, Selleys and Poly brands."