Red Spot Sells For $63 Million

A company with a long-standing tradition in Evansville will soon have a new owner. Fujichem Incorporated has agreed to purchase Red Spot Paint for $63 million. A company spokesman says the Evansville plant will continue to operate under the name "Red Spot". It currently employs 280 people. Red Spot opened its headquarters in Evansville in 1903. A spokesman says the headquarters will remain in Evansville. The following is the news release. News Release: From: Red Spot Paint & Varnish Co, Inc. FKK NEWS RELEASE STOCK PURCHASE AGREEMENT APRIL 2008 For Immediate Release: 4/21/08 at 1:30 p.m. Red Spot Paint & Varnish Co., Inc., Evansville, Indiana and Fujichem, Inc., a U.S. Subsidiary of Fujikura Kasei (FKK), Tokyo Japan have entered into a stock purchase agreement whereby Fujichem would purchase 100% of the shares of Red Spot for $63.2 million. The transaction is expected to close on May 30th, 2008 and is subject to customary closing conditions. Red Spot, under new ownership, will continue to operate as Red Spot Paint & Varnish Co., Inc., a consolidated subsidiary of Fujichem. With the globalization of the automotive business the advantage of combining into one entity has become opportune. Together the two companies provide a robust strategic global business model for customers with decorative and functional coatings for plastics of Red Spot. Red Spot’s people, facilities and infrastructure in Evansville, IN and Westland, MI will continue to serve customers in North America and South America. Red Spot’s joint venture partners in Korea and the UK as well as Red Spot’s licensees and customers in South America, Australia, Europe, Singapore, and China further broaden FKK’s global footprint to serve the global coatings for plastics coatings market. Red Spot and FKK have a long and successful relationship beginning in 1972. The partners have successfully developed products and markets, and currently manufacture, sell, and service each others and their own technologies. Seamless market development and technical exchanges regarding coatings for plastics have allowed pioneering opportunities to be realized. Mr. Yoshi Hasegawa, Chairman of Fujikura Kasei stated: “FKK/Fujichem appreciates the common strategies that Red Spot and FKK/Fujichem will utilize in product and market development, the business base for both Big 3 and Japanese Transplants, highest quality, and reliable delivery to better serve our mutual customers. The acquisition of Red Spot is key to our strategy of being the market leader in niche global markets. Red Spot will be structured and operated as a consolidated subsidiary of Fujichem”. Charles D. Storms, Chairman, President and CEO of Red Spot stated: “We are pleased that FKK has recognized the value in expanding and enhancing their long term relationship with Red Spot. The deep personal relationships between our respective employees and customers will assure a successful entry into the Americas for FKK through its U.S. subsidiary, Fujichem. The integration of two companies positions Red Spot under the Fujichem umbrella to grow and provide expanding opportunities for our people”.