NEW YORK, NY – July 22, 2002 – Investment banking firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has acquired and leased-backed the corporate headquarters of Alpharetta, GA-based Advantis Technologies Inc., a leading U.S. manufacturer of branded pool, spa and surface water chemicals and pool accessories, for approximately $13.1 million. Advantis is a subsidiary of Rockwood Specialties Inc., a leading global manufacturer and marketer of high value-added specialty inorganic chemicals and performance materials for industrial and commercial purposes.
Under the terms of the sale-leaseback agreement, the facility will be leased under a 15-year bond type net lease with two ten-year renewal options. The 192,000 square foot headquarters houses Advantis' corporate offices as well as its primary manufacturing and distribution operations. The newly built, state-of-the-art industrial facility located in Alpharetta, GA is situated 25 miles northeast of downtown Atlanta. The property was purchased on behalf of Corporate Property Associates 15 Incorporated (CPA®:15), W. P. Carey's newest publicly held non-traded real estate investment trust (REIT) and a member of the $3.5 billion W. P. Carey Group.
"In today's tightening credit market sale-leasebacks are increasingly becoming one of the preferred methods of financing for companies seeking to grow and expand their businesses," said Gordon J. Whiting, Executive Director and Deputy Director of Acquisitions at W. P. Carey. "This sale-leaseback transaction effectively turns Advantis Technologies' real estate into working capital."
"We are very pleased to have completed this sale-leaseback with W. P. Carey," said Scott G. Smith, Corporate Treasurer of Rockwood Specialties. "This transaction enabled us to monetize 100% of the value in a highly-appreciated real estate asset, versus more traditional mortgage-type financings, while freeing up capital to aggressively reinvest in our businesses."
Advantis Technologies, Rockwood's water chemical treatment business, is the second largest U.S. manufacturer of pool and spa specialty chemicals and water treatment chemicals, all sold under premium brand names as well as private label brands to distributors and large retailers. The company also manufactures pool accessories including vacuums, brushes and maintenance accessories. Advantis' brand names include GLB, Leisure Time, Robarb, Applied Biochemists and Blue Devil.
CPA®:15 invests in single-tenant commercial properties which are typically purchased under a long-term, triple-net lease in which the tenant is responsible for maintaining the premises, insuring the buildings and paying real estate taxes. CPA®:15 launched in November 2001, and as of June 30, 2002 had an ownership interest in more than 20 properties net leased to five tenants.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease or sale-leaseback structure. The firm and its affiliates continue to be leading lessors of net-leased corporate real estate. The largest publicly traded limited liability company in the world, W. P. Carey owns and/or manages more than 450 commercial and industrial properties throughout the United States and Europe comprised of more than 60 million square feet of property.
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission.
