16 September 2005
16 September 2005
Reichhold's executive management team, led by President and CEO John S. Gaither, has reached agreement with Dainippon Ink and Chemicals, Incorporated (DIC) for a management buyout.
Reichhold has been the wholly owned subsidiary of DIC since 1987. The agreement was signed on September 12, 2005 and is planned to close on September 30, 2005. 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.
“We appreciate the relationship we have enjoyed with DIC over the years. Our relationship now takes on a different character, but we anticipate that it will continue to be a productive and cordial one,” stated John Gaither. “We look forward to many continued years of mutual success.”
“Today marks the beginning of a new chapter in Dainippon’s relationship with Reichhold,” said DIC President, Dr. Koji Oe. “We will develop a fruitful relationship and look to a bright future for both our companies.”
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.
Reichhold is one of the world’s largest manufacturers of resins, gel coats and bonding pastes for the composites industry and a leading supplier of a wide variety of polymers for the coatings and graphic arts 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. We are very excited to be a part of the next phase of Reichhold’s history,”
Gaither stated. “We returned to Reichhold for a number of reasons, chiefly because we had spent such a large part of our professional lives here and we believe that we can make a difference that will enable Reichhold to live up to the potential we know it has,” he continued.
“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.
John S. Gaither is a polymer industry veteran who spent 32 years with Reichhold before leaving in 1998. He served in a number of senior management positions including president of three different Reichhold divisions, COO and Chairman of European Operations.
Under its new ownership, Reichhold will continue to lead the global composites and coatings industries with new products, technical service and market development initiatives. “We plan to continue expanding our reach through new technologies and applications,” explained John Gaither. “We don’t plan to rest on our laurels,” Gaither continued. “We want to assure our customers that Reichhold will continue to supply them with the industry-leading products, technical service and logistics upon which they have come to depend.”
“Our immediate goals are simply to focus on the basics—to consistently deliver the products that meet our customers’ needs: on-time, in-specification, and at a competitive cost. We plan to provide a challenging and rewarding work place for our 1600 employees around the world. 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,” concluded Gaither.
The name Reichhold will be retained under the new ownership and the executive management team will continue to lead the company in their current roles.