Royal Group engages financial advisors
June 20 2005 - 8:00AM
PR Newswire (US)
Royal Group engages financial advisors TORONTO, June 20
/PRNewswire-FirstCall/ -- Royal Group Technologies Limited
(RYG.SV-TSX; RYG-NYSE) today announced that it is evaluating
strategic alternatives, including a sale of the Company, and has
engaged Deutsche Bank and Scotia Capital as financial advisors to
assist the company in evaluating interest from potential acquirors
of the Company. The process will include a broad list of potential
buyers as well as Cerberus Capital Management L.P. that previously
submitted an unsolicited request for access to the Company's books
and records, indicating that, if satisfied, it may make an offer of
$14.00 per share. No offer for shares of Royal Group has yet been
made by Cerberus. Consistent with the Company's earlier press
release, the Company will establish a data room and make other
information available to parties interested in considering a
transaction. PricewaterhouseCoopers LLP has been retained by Royal
Group to assist with assembly of the data room. Royal Group also
announced that the special committee has been reconstituted after
its annual and special meeting, such that the members are now
Robert Lamoureux (Chair), James Sardo, Irvine Hollis, Carol Hansell
and Graham Savage. The special committee has also retained BMO
Nesbitt Burns to provide the committee with independent advice as
to the adequacy of any definitive proposal that may be received and
Goodmans LLP as legal counsel. The Company anticipates that the
process will require several months, but cautions that there is no
assurance that a definitive proposal will emerge. Additionally, the
special committee has not made any determination as yet whether a
sale would be in the best interests of the Company or its
shareholders. Royal Group Technologies Limited is a manufacturer of
innovative, polymer-based home improvement, consumer and
construction products. The Company has extensive vertical
integration, with operations dedicated to provision of materials,
machinery, tooling, real estate and transportation services to its
plants producing finished products. Royal Group's manufacturing
facilities are primarily located throughout North America, with
international operations in South America, Europe and Asia.
Additional investment information is available on Royal Group's web
site at http://www.royalgrouptech.com/ under the "Investor
Relations" section. The information in this document contains
certain forward-looking statements with respect to Royal Group
Technologies Limited, its subsidiaries and affiliates. These
statements are often, but not always made through the use of words
or phrases such as "expect", "should continue", "continue",
"believe", "anticipate", "estimate", "contemplate", "target",
"plan", "budget", "may", "will", "schedule" and "intend" or similar
formulations. By their nature, these forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant, known and unknown, business, economic, competitive
and other risks, uncertainties and other factors affecting Royal
specifically or its industry generally that could cause actual
performance, achievements and financial results to differ
materially from those contemplated by the forward-looking
statements. These risks and uncertainties include the ongoing
shareholder value maximization process and its outcome; the outcome
of the ongoing internal review and investigations by the Special
Committee of the Board of Directors; fluctuations in the level of
renovation, remodeling and construction activity; changes in
product costs and pricing; an inability to achieve or delays in
achieving savings related to the cost reductions or increases in
revenues related to sales price increases; the sufficiency of our
restructuring activities, including the potential for higher actual
costs to be incurred in connection with restructuring activities
compared to the estimated costs of such actions; the ability to
recruit and retain qualified employees; the level of outstanding
debt and our current debt ratings; the ability to meet the
financial covenants in our credit facilities; changes in product
mix; the growth rate of the markets into which Royal's products are
sold; market acceptance and demand for Royal's products; changes in
availability or prices for raw materials; pricing pressures
resulting from competition; difficulty in developing and
introducing new products; failure to penetrate new markets
effectively; the effect on foreign operations of currency
fluctuations, tariffs, nationalization, exchange controls,
limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving
proprietary technology; adverse resolution of any litigation,
investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or
environmental laws, rules and regulations; currency risk exposure
and other risks described from time to time in publicly filed
disclosure documents and securities commission reports of Royal
Group Technologies Limited and its subsidiaries and affiliates. In
view of these uncertainties we caution readers not to place undue
reliance on these forward-looking statements. Statements made in
this document are made as of June 20, 2005 and Royal disclaims any
intention or obligation to update or revise any statements made
herein, whether as a result of new information, future events or
otherwise. DATASOURCE: Royal Group Technologies Limited CONTACT:
Robert Lamoureux, Lead Director and Interim CFO or Mark Badger,
Vice President, Marketing and Corporate Communications, Phone:
(905) 264-0701, Fax: (905) 264-0702
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