Accsys Tech Regulatory News (AXS)

28 Mar 2007 07:04

Accsys Technologies PLC28 March 2007 28th March 2007 AIM: AXS Accsys announces strategic partnership and supply agreement with Celanese, Celanese to make investment of €22 million Accsys Technologies PLC ("Accsys" or "the Company") has signed a long termexclusive supply agreement with Celanese Corporation ("Celanese"), the globalleader in acetyls, which has a market capitalization of $5 billion, and is quoted on the New York Stock Exchange (symbol 'CE'). Under the agreement, Accsys (www.accsysplc.com) will be able to ensure supply ofacetyls to the licensees of its proprietary Accoya(TM) wood production process,wherever they are in the world. This will enable Accsys' licensees toconcentrate their investment spending on the core wood modification business andis expected to accelerate the uptake of Accoya(TM) technology around the world. Celanese (www.celanese.com) with net sales of US$6.7 billion (2006), is theleader in the global acetyls market and is committed to maintaining its leadingposition through growth and innovation. This agreement allows Celanese tocapture the growth in acetyls demand that Accsys' proprietary wood acetylationtechnology is expected to generate. In addition, Celanese has taken an option toevaluate and acquire Accsys' proprietary acetic anhydride production technology. Celanese is further demonstrating its commitment to Accsys' business bysubscribing for new shares, subject to shareholder approval, representingapproximately 5.5% of Accsys' issued share capital (post event) at a 5% premiumto the closing share price on 27th March 2007. This equity transaction willinvolve the acquisition of 8,115,883 newly issued shares at a price of €2.72 pershare, representing an investment in the Company of €22M ($29.5M). Celanese willhave an option to increase its ownership of Accsys to 29.9% in the future at themarket price at that time. If approved by Accsys' shareholders at an EGM, thetransaction at €2.72 per share values Accsys at approximately €400 million. Willy Paterson-Brown, Executive Chairman of Accsys, commented: "This is asignificant transaction for Accsys and clearly demonstrates how far the Companyhas come since listing on AIM in October 2005. The strategic partnership withCelanese is the perfect fit, which guarantees supply of acetyls for ourLicensees, as well as our own operations in Arnhem. It also allows our Licenseesto focus their own capital investment on wood capacity, rather than chemicalsupport and, as a result, will have value for all concerned. We are delightedthat Celanese have chosen to take an equity stake in the Company, and welcometheir input on our Board of Directors." Finlay Morrison, Vice President of Acetyl Intermediates at Celanese, added: "Thestrategic partnership with Accsys is clearly a win-win situation. The potentialgrowth of Accsys over the next decade and the value that Celanese can add tothat growth will have a positive impact to both companies' performances. It isclear that Accsys' Accoya(TM) technology creates a tremendous opportunity forcompanies in the wood industry, as well as for architects, constructioncompanies and consumers who are looking for more environmentally sustainablebuilding materials." Following the announcement earlier this month of commercial production ofAccoya(TM) wood at Accsys' 100% subsidiary, Titan Wood's (www.titanwood.com) new30,000 m3 Arnhem facility, the Company's order books are virtually full throughto the end of 2007, with production committed into a wide range of differentproduct applications, from civil construction to joinery. The combination oflarge-scale commercial production now underway with the security of supply ofacetyls being supplied by Celanese is expected to simplify and strengthen thelicence proposition, accelerating the take up of the technology by potentiallicensees. The additional capital in the business will be focused on supportingthe growth of licensing, as well as further development of Accsys' proprietarytechnologies, including wood fibre. Willy Paterson-Brown added: "The completion of the agreement with Celaneseprovides confidence in our technologies and a springboard for future commercialdevelopment. The transaction is a major landmark for Accsys and will allow us toreview our entire chemical supply strategy in a new light. With successfulproduction in Arnhem, and supply of acetyls secure, we are now able to turn ourattention to licensing, which we had placed on hold while we negotiated termswith Celanese. Although this will impact results to March 31st 2007, the firstfull license should be signed in the Second Quarter and the several licenceoptions that are presently under negotiation are expected to mature,accelerating our future growth." All these agreements with Celanese are conditional upon Accsys' shareholders'approval of the equity transaction. A Circular seeking approval, at anExtraordinary General Meeting, will be dispatched to Accsys shareholders at thebeginning of April. ENDS For further information, please contact: Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 8122 9191www.accsysplc.com Executive Chairman Collins Stewart Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000 Parkgreen Communications Justine Howarth / Clare Irvine +44 (0) 20 7851 7480 Notes to Editors About Celanese As a global leader in the chemicals industry, Celanese Corporation (NYSE: CE)makes products essential to everyday living. Our products, found in consumerand industrial applications, are manufactured in North America, Europe and Asia.Net sales totalled $6.7 billion in 2006, with approximately 60% generatedoutside of North America. Known for operational excellence and execution of itsbusiness strategies, Celanese delivers value to customers around the globe withinnovations and best-in-class technologies. Based in Dallas, Texas, the companyemploys approximately 8,900 employees worldwide. For further information aboutCelanese, please visit www.celanese.com. Titan Wood Limited (www.titanwood.com) is wholly owned subsidiary of the AccsysTechnologies PLC (www.accsysplc.com) group of companies. Accsys Technologies PLCis listed on the London Stock Exchange AIM market under the symbol 'AXS'. Wood Acetylation is a process, which increases the amount of 'acetyl' moleculesin wood, thereby changing its physical properties. The process protects woodfrom rot by making it "inedible" to most micro-organisms and insects, without -unlike conventional treatments - making it toxic. It also greatly reduces thewood's tendency to swell and shrink, making it less prone to cracking andensuring that when painted it requires dramatically reduced maintenance. Accoya(TM) wood (www.accoya.info) is produced using a patented process thateffectively converts sustainably grown softwoods and non-durable hardwoods intowhat is best described as a 'new wood species'. Distinguished by its durability,dimensional stability and, perhaps most importantly of all, its reliability (interms of consistency of both supply and quality), Accoya(TM) wood is particularlysuited to exterior applications where performance and appearance are valued.Unlike most tropical and European hardwoods, its colour does not degrade whenexposed to ultraviolet light. Moreover, the Accoya(TM) wood production processdoes not compromise the wood's strength or machinability. The combination of UVresistance, dimensional stability, durability and retained strength means thatAccoya(TM) wood offers a wealth of new opportunities to architects, designers andspecifiers. For marine uses where weight is also important, Accoya(TM) wood forthe first time provides boat builders with a wood that is strong, lightweight,durable and which retains its natural beauty for far longer. ACCOYA is a registered trademark owned by Titan Wood Limited This information is provided by RNS The company news service from the London Stock Exchange