Management to buy-out Reichhold
RESEARCH TRIANGLE PARK, N.C. – Reichhold’s executive management team, led by President and CEO John S. Gaither, has reached an agreement with Dainippon Ink and Chemicals, Inc. (DIC) for a management buyout, the company reported in a statement yesterday.
Reichhold has been the wholly owned subsidiary of DIC since 1987. The agreement was signed on September 12 and is expected to close on September 30.
DIC had planned a restructuring of the company and concluded that the sale of all shares of Reichhold to the existing management team was in the best interest of both firms. Under the terms of the agreement, although DIC will retain the Austrian coatings operations, both DIC and Reichhold will be free to continue to independently supply the worldwide coatings markets.
“I was asked by DIC to rejoin Reichhold in 2004 and quickly assembled the executive team of former and current Reichhold veterans who are participating in this management buy-out,” said Gaither. “We are very excited to be a part of the next phase of Reichhold’s history.”
“We have taken a market leadership position and focused on improving efficiencies in all areas of our operations. Financial results from the second half of 2004 and through the first half of 2005 show that we are once again on the right track. It is our intention to continue along this path in both the coatings and composites markets,” said Gaither. “Our new ownership role will not change the direction of the business, but certainly gives us a heightened sense of responsibility for serving all our stakeholders.”
The name Reichhold will be retained under the new ownership. The executive management team will continue to lead the company in their current roles, the company reported.
- For more of the latest news, click here.
