Hanson buys Quantum in $3.2 billion deal

Having failed in its unlikely and unfriendly bid for ICI two years ago, British conglomerate Hanson plc has decided to go after smaller fish, this time in a friendlier way. In an unexpected move last week, Hanson disclosed signing of a definitive agreement to acquire Quantum Chemical, based in New York City, in a deal valued at $3.2 billion. Quantum is one of the largest polyethylene producers in the U.S. and represents Hanson's biggest foray into U.S. chemicals. Hanson owns a number of businesses in the U.S.—including Peabody Coal, Jacuzzi Whirlpool Baths, and Farberware Cookware—but its only chemical unit is SCM Chemicals. Although big dollar figures are cited, Quantum's stockholders will not see cash under terms of the agreement disclosed by Lord White, chairman of Hanson Office Products (formerly Hanson Industries), the U.S. arm of Hanson plc, and John H. Stookey, Quantum's chairman. Instead, Hanson will acquire all of Quantum's common stock in a tax-free ...