OM Group to Acquire Borchers GmbH


o Acquisition is part of OMG's transformation strategy
o Deal extends product line, broadens geographic reach
o Transaction expected to be accretive immediately

CLEVELAND, Sept. 4 /-- As it moves forward with its long-range portfolio transformation and growth strategy, OM Group, Inc. (NYSE:OMG) today announced that it has agreed to acquire Borchers GmbH, a leading European-based specialty coatings additive supplier. The Borchers operations will be integrated with OMG's existing Advanced Organics business. Terms of the deal were not disclosed.

"Borchers is an excellent fit with our advanced organics coatings business, as it extends our current product portfolio into water-based coatings, an important end market providing outstanding growth opportunities," said Joseph M. Scaminace, chairman and chief executive officer. "Moreover, this acquisition provides further geographic expansion into Europe and Asia while enabling us to leverage OMG's existing strength to accelerate sales growth of Borchers' water-based additives in the United States."

Founded in 1807 as a family-run business and formerly owned by Bayer AG, Borchers has belonged to the Lanxess Group since 2004. OMG will acquire Borchers from Lanxess subject to customary approvals. Borchers' sales for 2006 were approximately euro 36 million.

With headquarters in Langenfeld, Germany, Borchers has production operations in France and is supported by regional technical service centers in Germany, the United States and China. The company has more than 90 employees and is represented in about 130 countries through a global sales network.

"Borchers is a highly respected technology leader with a large technical service group focused on new-product development and problem solving," Scaminace added. "It is continually developing exciting new technologies that contribute to the advancement of coatings."

Borchers products enhance the performance of coatings and ink systems - from the production stage through to customer end use. The products improve processing options, free-flowing properties, consistency and gloss, control surface drying and drying-out properties, enhance rheology and dispersency, optimize resistance to the most diverse range of stresses and shape the environmental compatibility of contemporary surface hardening.

The acquisition of Borchers, which is expected to close early in the fourth quarter and be accretive to earnings immediately, represents a step forward in OM Group's long-range growth strategy, which includes continued product innovation as well as tactical and strategic acquisitions. Announced June 25, 2007, the strategy is designed to deliver sustainable and profitable volume growth, drive consistent financial performance and build long-term shareholder value.

Through the successful execution of the strategy, the company expects to achieve consolidated revenues of $2 billion to $4 billion by 2010 and rank in the top quartile of specialty chemical and specialty material companies in terms of EBITDA margins and other financial metrics. Over the past two years, OMG has already divested its commodity Nickel business, retired high-yield debt, implemented broad-based operational excellence initiatives, and reshaped and expanded its board of directors.

ABOUT OM GROUP, INC.

OM Group is a leading, vertically integrated international producer and marketer of value-added, metal-based specialty chemicals and related materials. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia and Africa. For more information, visit the company's Web site at http://www.omgi.com/.

FCMN Contact: Greg.Griffith@na.omgi.com

Source: OM Group, Inc.

CONTACT: Greg Griffith, vice president, strategic planning, development and investor relations, of OM Group, Inc., +1-216-263-7455

Web site: http://www.omgi.com/

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