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Chase Corporation Acquires NEPTCO, Inc.

Chase Corporation ( NYSE MKT: CCF) announced that it has acquired 100% of the capital stock of NEPTCO, Inc. (NEPTCO), a private company whose core products are sold primarily into the broadband communications and electronics packaging industries. The purchase price on a debt free, cash free basis was $67.0 million, excluding any working capital adjustments and acquisition related costs. As part of this transaction, Chase is also acquiring NEPTCO’s 50% ownership stake in a joint venture. NEPTCO revenues were $69.5 million in their most recently completed year ended December 31, 2011 excluding $25.8 million attributable to the joint venture. NEPTCO’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $11.3 million for the same fiscal period.

The acquisition was funded through term debt bank financing led and arranged by Bank of America, with participation from RBS Citizens. The applicable interest rate is based on the effective London Interbank Offered Rate (LIBOR) plus a range of 1.75% to 2.25%, depending on the consolidated leverage ratio of Chase Corporation. As part of the financing for this acquisition, the Company also obtained a new revolving line of credit totaling $15 million which will allow for increased flexibility for working capital requirements going forward.

Peter R. Chase, Chairman and Chief Executive Officer commented: "The combination of Chase and NEPTCO's Wire & Cable materials businesses, based in North America, offers the broadest array of proven products to our predominately Americas-based customers. This merger creates a solid value proposition by bringing together over 120 years of combined service to the industry. In addition, there are some exciting synergies in other markets served by both entities. We are confident that our joining together will both enhance today's customer experience and provide greater resources to deliver tomorrow's solutions."

Guy Marini, President of NEPTCO commented: “Our organization is excited to become part of the Chase team. We look forward to providing our customers with best in industry service, quality, and product.”

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