New Direction

WHEN INDUSTRY WEEK SPOKE WITH BARRY W. PERRY BACK IN 2002, the chairman and CEO of Iselin, N.J.-based Engelhard Corp. discussed his mission to integrate the company's four operating units into a single organization with a consistent, credible message ("Perry's All Four One," August 2002).

Four years later it appears that the surface and materials science company is on course to become one with BASF AG, Ludwigshafen, Germany. In late May Engelhard announced that it had agreed to merge with

chemical maker BASF in an approximately $5.6 million deal. BASF will acquire all of the outstanding shares of Engelhard for $39 per share, giving the transaction a total net equity value of about $5 billion and an enterprise value of $5.6 billion including net debt, Engelhard said. The deal awaited shareholder approval.

The late May merger agreement appears to conclude a deal BASF has sought publicly since January, when it made an unsolicited bid for Engelhard at $37 per share.

"Our board has determined that the $39 per share offer provides fair value to our shareholders, and the agreement paves the way for an orderly and cooperative transaction," Engelhard's Perry said in a statement.-JILLL JUSKO