December 21, 2006

Jobbers World Online News Briefs is a service to Subscribers to the Jobbers World Newsletter.

In this Issue of Jobbers World Online News Briefs
  • Chemtura Announces Intent to Acquire Kaufman Holdings
  • Shell Makes Some Interesting Price Adjustments to FormulaShell
  • ConocoPhillips Makes Changes to its Oil Analysis Program

  • Chemtura Announces Intent to Acquire Kaufman Holdings

    Chemtura Corporation (NYSE: CEM) and Kaufman Holdings Corporation announced today that they have signed a letter of intent for Chemtura to acquire Kaufman's stock in a cash transaction expected to close in the first quarter of 2007. Terms of the transaction, which is subject to final negotiations and regulatory approval, were not disclosed.

    "Through this transaction, Chemtura would gain strong positions in two exciting new markets: high-growth lubricants for CFC-free refrigeration compressors and high-purity synthetic lubricants," said Chemtura Chairman and CEO Robert L. Wood.

    "Chemtura has the global scale and specialty chemical expertise needed to maximize the potential of these dynamic businesses," said Kaufman President and CEO Alex Kaufman.

    Kaufman is a privately-held corporation with approximately 300 employees and 2006 revenues in excess of $200 million. It has manufacturing facilities in Fords and East Hanover, N.J. and Oakville, Canada.

    Kaufman includes two operating companies, 1) Hatco Corporation, a worldwide leading producer of polyol esters used for technically demanding synthetic lubricant applications, including aviation turbine oils and lubricants for CFC-free refrigeration compressors; and 2) Anderol, Inc., a worldwide leader in high-purity, synthetic lubricants used in demanding aviation and industrial applications such as compressors, bearings, gears and food-grade machinery.

    Kaufman Holdings Corporation is a leading producer of specialty chemicals for use in the automotive, aviation, refrigeration, industrial, cosmetic and personal care markets. It serves customers and markets through a global network of integrated sales, production, research, technical service and distribution facilities. Chemtura Corporation, with pro forma 2005 sales of $3.9 billion, is a global manufacturer and marketer of specialty chemicals, crop protection and pool, spa and home care products. Additional information concerning Chemtura is available at www.chemtura.com.

    Shell Makes Some Interesting Price Adjustments to FormulaShell

    Shell advised its marketers this month about several changes to its FormulaShell pricing program. The changes impact pricing to contract Shell marketers. One change that certainly got the attention of marketers was word that Shell will lower distributor prices for bulk FormulaShell by $0.35 a gallon. Although marketers say their first reaction to the price decrease, was for obvious reasons, welcomed, they were not sure what to make of it after they looked at other changes to FormulaShell pricing. This is because the other changes impact programs that included price incentives.

    Shell announced, for example, that it will end the current VDI program for FormulaShell in bulk, effective 2007. As a result, any off invoice discounts offered under this program will be gone. At the same time, however, they say Shell will introduce a new “FormulaShell Brand Commitment Program (BCP) to replace the VDI, and this program could turn the tables back to a net price decrease. In the words of several marketers, these changes mean different things to each marketer. Some will come out ahead and others will not.

    Get all the details on these changes in the next print issue of Jobber World

    ConocoPhillips Makes Changes to its Oil Analysis Program

    According to a number of marketers carrying the ConocoPhillips family of lubricants, ConocoPhillips announced it will make significant changes to its AnalysisPlus oil analysis programs. One change includes consolidation of suppliers providing oil analysis services to the program. Effective January 1, 2007, marketers will have the option of using only POLARIS Labs or Staveley Services (aka CTC) for the AnalysisPlus Premium Testing. Analysts, Inc. and Wear Check will no longer be an option. Lab One Inc., however, will continue to provide Basic testing.

    From what ConocoPhillips is reportedly telling its marketers this consolidation will result in a significant reduction in the price of its PremiumTesting option and all historical trend data can be transferred from the labs that are not in the program to those that are. In addition, test methods at Lab One will be upgraded to ASTM protocols. These upgrades will reportedly result in a price increase for basic testing.

    Another important change to the program is said to be ConocoPhillips decision to change software service providers. Whereas Dingo Maintenance Systems currently provides this service, starting in 2007, software service for the AnalysisPlus program will be provided by the oil analysis laboratories in the program. Marketers say they are comforted to hear that ConocoPhillips has contracted with Dingo to assist with the transition.


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