Tessenderlo Kerley, Inc. and Davison Petroleum Products LLC Dissolve their relationship in Tessenderlo Davison Companies LLC

Phoenix, AZ - Tessenderlo Kerley, Inc. (TKI), Phoenix, Arizona announced recently they have elected to sell their interest in Tessenderlo Davison Companies, LLC (TDC), the joint marketing venture with Davison Petroleum Products, LLC (DPP), Ruston, Louisiana. Since its inception in 2001, TDC has been focused on the marketing of sodium hydrosulfide (NaHS), caustic soda and caustic services in North and South America.

Tessenderlo Davison Companies LLC will continue operating under the name of TDC, LLC, a wholly owned subsidiary of Davison Petroleum Products, LLC, Ruston, Louisiana.

The financial aspects of this sale/purchase agreement include 80 million USD in cash plus a portion of the venture's working capital estimated at 10 million USD to TKI with TDC assuming certain existing debt and specified liabilities. The agreement also includes the transfer of the physical assets and products at the Westlake, Louisiana and Lake Point, Utah locations to TDC. TKI will cease the production, marketing and the distribution of sodium hydrosulfide (NaHS) and caustic soda in North and South America for a period of five years.

TKI will continue to provide certain administrative functions to TDC until the organization is able to assume these responsibilities.

According to Jordan Burns, CEO of TKI, this amiable parting is due to a difference in the objectives between the two principal companies involved in the original venture.

SOURCE: Tessenderlo Kerley, Inc.