About the ExchangeChemConnect Acquiring CheMatch
Enhanced liquidity and a wider range of products and services will increase value of e-commerce for global buyers and sellers of chemicals and plastics
San Francisco, CA (January 10, 2002) – ChemConnect Inc., which operates the leading online marketplace for chemicals and plastics, today announced that it has signed a definitive agreement to acquire CheMatch, an Internet exchange for bulk commodity chemicals, polymers, feedstocks, and fuel products. The companies, which each have delivered steady growth over the past two years, together handled more than $4 billion in transactions in 2001. Now, all those transactions will flow through one company, whose combined customer base will benefit from the significantly increased liquidity. In addition, with the acquisition of CheMatch, ChemConnect will offer the industry's most comprehensive and proven e-commerce solutions, including the Exchange Floor, online auctions, a commodity spot and futures exchange, and an electronic communications hub for the automated transfer of transaction data.
John Robinson will serve as CEO of the combined company, which will be called ChemConnect. Corporate headquarters will move from San Francisco, California to Houston, Texas. It is expected that the acquisition, which has been approved by the Boards of both companies, will complete the shareholder and regulatory approval processes by the end of February 2002.
"ChemConnect established itself as the leading online chemical and plastics e-marketplace by offering a full set of e-commerce solutions and delivering excellence in customer experience. And now we're ready to take the next step—for ChemConnect, our Members, and the industry," Robinson said. "By concentrating liquidity, negotiation tools, fulfillment services, and information in one place, we are making it much easier for buyers and sellers of chemicals and plastics to accelerate their adoption of e-commerce."
"By combining ChemConnect and CheMatch, we are creating a stronger base for the mutual benefit of both companies' customers and investors," said Larry McAfee, CheMatch president. "Going forward, global buyers and sellers of chemicals and plastics will realize greatly increased value from this new one-stop e-commerce solution."
"This is great news for buyers and sellers of chemicals and plastics worldwide, as well as for the shareholders of both these leading companies," said Sergey A Vasnetsov, Lehman Brothers, Inc. senior vice president. "ChemConnect has carefully managed its cash-flow; successfully introduced a subscription-based revenue model in addition to transaction fees; and merged with Envera to provide end-to-end online capabilities. Now, with this acquisition, ChemConnect consolidates the best offerings from the industry's two leading third-party e-commerce contenders."
"The combination of ChemConnect and CheMatch delivers increased value to Dow and should to other buyers and sellers of chemicals and plastics as well," said Andy DuPont, The Dow Chemical Company global director, electronic channels. "With increased focus and liquidity in areas such as commodities trading, it should facilitate greater utilization at Dow and ultimately increase adoption within the industry."
ChemConnect, founded in 1995, handled more than 6 million metric tons of product transactions in 2001; CheMatch, founded in 1997, exceeded 4 million metric tons. ChemConnect has more than 9,000 Member companies, a strong cash position, and it provides end-to-end tools and services that streamline the entire transaction life cycle, from market assessment to negotiation and fulfillment. CheMatch has an agreement with the Chicago Mercantile Exchange to facilitate futures trading. Both companies provide information services.
About CheMatch.com
CheMatch.com® - The Global Trading Network™ is a business-to-business, Internet-based market place for purchasers and sellers of bulk commodity chemicals, feedstocks, plastics and fuel products. The marketplace incorporates a real-time, interactive trading exchange where members can trade 24 hours a day, seven days a week. Strategic and financial investors include Battery Ventures, Bayer AG (NYSE: BAYZY), (FSE: BAYG.F), E.I. DuPont de Nemours and Company (NYSE:DD), GE (NYSE:GE), Methanex (Nasdaq:MEOH;TSE:MX), Millennium Chemicals (NYSE:MCH), H. Muehlstein & Co., Inc., Reed Elsevier, Sprout Group, Stolt-Nielsen S.A. (Nasdaq:SNSA), (Oslo Stock Exchange:SNIB) and YourEnergySource.com. Headquartered in Houston, CheMatch.com has international offices in Germany, Rotterdam and Singapore.
For more information, please contact:
Bob Osmond
UpStart Communications
(510) 457-3111
bosmond@upstart.com
Liz Youngs
UpStart Communications
(843) 881-5751
lyoungs@upstart.com
Note to Editors: ChemConnect is a registered trademark of ChemConnect, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.