Sterling Chemicals Posts Strategic Acquisition Strategy
Sterling Chemicals announced on May 7, 2010, its Board of Directors authorized management to pursue the acquisition of companies or assets with the goals of materially diversifying its cash flow streams, creating strong long-term growth opportunities and providing a platform for listing its shares of common stock on The NASDAQ Stock Market or the New York Stock Exchange. After an extensive review with the Board of Directors of a wide range of acquisition targets and financing alternatives, Sterling has decided to focus its search for acquisition candidates in a variety of industries, which includes companies or assets involved in chemical distribution, specialty chemical manufacture or bulk, petroleum or chemical storage or logistics and whose existing business would benefit from Sterling's available acreage and infrastructure at its Texas City, Texas site. Sterling anticipates that the structure of the financing for any such acquisition will be determined by, among other things, the characteristics of the acquisition target, and may involve a cash purchase, a merger, an exchange of stock or another financing mechanism, or the formation of a joint venture or other business partnership.
John V. Genova, Sterling's President and Chief Executive Officer, stated that, "We believe that Sterling has numerous qualities that will make us an attractive choice as an acquirer, especially for sellers seeking increased liquidity through a public-company platform. Our strong balance sheet, with a current cash position of over $120 million, should enable us to close quickly on any attractive and accretive acquisition opportunity. We expect opportunities to come to our attention from a variety of sources, including our employees, officers and directors, professional advisers, investment banks, venture capitalists and others who may present unsolicited proposals."