news of the week cates and zeolites business (C&EN, Oct. 19, page 25). The $455 million deal would have swelled catalyst sales by about $270 million a year based on 1997 figures, but was derailed because Federal Trade Commission approval was not forthcoming. Still, catalysts are likely to become an even larger part of Grace's business. Current chairman Costello has indicat-
ed that Grace might sell the company's Darex container sealants business, using excess cash to buy back Grace shares (C&EN, June 15, page 13). Without the $264 million in 1997 sales Darex represents, catalysts would represent a proportionately much larger share of Grace's overall business. Marc Reisch
DuPont's purchase of Herberts—for $1.89 billion in cash—is doubly interesting because it comes just days after the New York investment firm Kohlberg Kravis Roberts & Co. (KKR) dropped an agreeBelieving that "for proactive leaders Coalition members say they will carry Miller: ample funds there are major business opportunities in out their own recommendations through ment in princimeeting the climate challenge, if the pol- their networks of business ventures and ple to buy the coatings company for about icy environment is right," British Petro- alliances, through purchasing decisions $1.7 billion, reportedly because the price leum, General Motors, and Monsanto and investments, and through their part- was starting to look too high in a declining economic environment (C&EN, Oct. 26, have joined with the World Resources ners in global business activities. Institute—a Washington, D.C.-based cenBut government, too, needs to pro- page 13). ter for environmental policy research- vide better support for greenhouse gas Louis F. Savelli, president of DuPont Auin a broad scheme to reduce greenhouse stabilization, the group says. It recom- tomotive, told reporters last week that Dugas emissions. mends an end to federal fossil fuel subsi- Pont has looked at the Herberts business After 18 months of negotiation, the co- dies, more support for basic research on "intensively" for several years and entered alition, which is calling itself "Safe Climate, climate science and economics, and edu- into negotiations when Hoechstfirstput the Sound Business," has come up with plans cation efforts to raise public awareness business up for sale. "We did not win the first round; we won the second round," he for reduction and sequestration of carbon of the global climate issue. dioxide emissions and increased support The companies' action plans were an- said. "We've never changed our estimation for climate-change research. nounced on the same day last week that of the value of that business. The coalition says it has reached three the President's Council on Sustainable "Offers can be structured in many difconclusions: Climate change is a con- Development presented its climate- ferent ways," Savelli pointed out. Although cern, and action is justified now; busi- change recommendations to Vice Presi- KKR's announced price appeared lower ness can contribute to climate protection dent Al Gore, and they came just prior to to outsiders, the true value of its bid was in substantial positive ways; and flexible the international global climate-change known only to Hoechst, he said. and market-oriented climate policies are conference in Buenos Aires, which starts Savelli, clearly happy with the way needed to address the long-term issue of this week. That UN-sponsored confer- things turned out, said the fit between atmospheric greenhouse gas concentra- ence is the fourth in a series being held Herberts and DuPont is "exceptional." tions. The emphasis is on "durable policy to discuss ways to implement the Kyoto DuPont is the leader in automotive coatpathways" that maximize environmental protocol. ings in both North and South America, protection and economic development David Hanson and Herberts is the leader in Europe. and not on the "single-dimensional apThe combined company, with sales in proaches of the past." excess of $3.7 billion this year—$1.5 billion from Herberts—will be the world's Single-dimensional approaches, acthird largest coatings company, DuPont cording to the coalition, include the Unitsays. ed Nations' effort to reduce greenhouse gases—the Kyoto protocol—which Joseph A. Miller Jr., DuPont senior would mandate specific carbon dioxide It seems there's more than one way to vice president and chief technology offiemissions reductions in developed coun- build a life sciences company. Aspiring cer, said the purchase is in keeping with tries over the next decade or so. "Regard- pharmaceutical and agbiotech leader Du- the strategy laid out earlier this year by less of what the Kyoto protocol says, we Pont has agreed to acquire Herberts, the Chief Executive Officer Charles O. Hollisee it as just a step in the path toward coatings subsidiary of Hoechst, another day Jr. of growing in life sciences while climate-change improvements," Monsan- pursuer of the life sciences. strengthening core businesses. to spokeswoman Diane B. Herndon says. Miller noted that the recent acquisiThe transaction, expected to be comActions industry can take now, ac- pleted in the second quarter of next year, tion of the Tongkook spandex business cording to the coalition, include measur- highlights two highly different approaches in South Korea and the ongoing puring and reporting corporate greenhouse to the new biotechnology-driven world of chase of ICI's titanium dioxide business gas emissions, developing cost-effective life sciences: DuPont is building its life sci- are other examples of this approach. He strategies that minimize emissions and ence business on top of established, cash- added that the third leg of this strategysupport carbon sequestration, taking cli- generating core operations in chemicals, exit from the energy business—is bringmate issues into account when making fibers, and coatings, whereas Hoechst is ex- ing in ample funds to finance the Herinvestment decisions, and educating iting these basic industrial businesses alto- berts buy and other acquisitions. Michael McCoy companies in climate issues. gether in order to hone its new focus.
Companies agree on climate-change actions
Hoechst coatings going to DuPont
10 NOVEMBER 2, 1998 C&EN
