GEO Announces Settlement of Civil Antitrust Litigation and New $70 Million Credit Facility
January 14th, 2019, Ambler, Pa. – GEO Specialty Chemicals, Inc. (“GEO” or the “Company”), a leading producer of specialty and performance chemicals, announced today that it has settled all material antitrust litigation to which it was a party and has entered into a new $70 million senior credit facility.
During 2015 and 2016, GEO and numerous other companies operating in the water treatment chemicals industry were named as defendants in more than forty civil antitrust suits relating to the sale of aluminum sulfate. The cases were consolidated in a multi-district litigation in the U.S. District Court, District of New Jersey. As a result of the settlement agreements entered into by GEO, and the related court orders becoming final, all material claims against GEO in the civil antitrust litigation have been dismissed.
Contemporaneously with GEO’s litigation settlement agreements receiving final court approval, GEO entered into a new $70 million senior credit facility, part of which was used to refinance its previously existing senior indebtedness, with the balance being used to fund its obligations under the settlement agreements and for general corporate and working capital purposes.
Kenneth A. Ghazey, GEO’s Chief Executive Officer, commented, “These critically important developments mark the culmination of a very challenging five year journey during which GEO, with the support of its employees, vendors, customers, lenders and other stakeholders, sought to resolve a number of governmental and plaintiff claims that were made against our water treatment business. The importance of resolving this litigation and securing new financing that significantly improves our liquidity position cannot be overstated. GEO will now be focusing its efforts on what it does best – manufacturing and selling great products and exceeding our customers’ expectations for quality, delivery, and service across all of our product lines.”
About GEO: GEO is a leading developer, manufacturer and supplier of a wide variety of specialty and performance chemicals. GEO operates its business in three divisions comprised of the Water Treatment Division, the Paints and Coatings Division, and the Specialty and Construction Division.