ImproChem
11 December 2012

ANNOUNCEMENT - IMPROCHEM AND GE CMS BUSINESS:

I am pleased to announce that AECI has acquired General Electric’s world-class Chemical and Monitoring Solutions (CMS) business in South Africa and Sub-Saharan Africa. The acquisition is effective from 1 July 2012 and will be merged into ImproChem, which is leading the AECI Group’s strategic growth thrust to become the supplier of choice for specialty water treatment and process chemicals and services in Africa.
 
The geographies covered by the transaction are Africa and the Indian Ocean islands including Madagascar, Mauritius, Seychelles, Rodrigues and Reunion.  Excluded from the transaction are businesses in Egypt, Libya, Tunisia, Algeria and Morocco.
 
ImproChem provides integrated water, energy and air solutions to the chemical, refining, petrochemical, mining and food and beverage industries.  It is has a well-established footprint in Africa and the agreement with General Electric (GE) will ensure that Customers in this region, where water is often a scarce resource, continue to have access to the most advanced technologies that enhance the efficiencies of their operations while reducing operating costs.  
 
ImproChem and GE have also entered into an exclusive distribution agreement and a licensing arrangement that provides GE with continued direct involvement with the business.  As part of the agreement, ImproChem will produce chemical products using GE formulations at its Umbogintwini plant.  ImproChem and GE have also entered into a non-exclusive agreement with GE Engineered System Products “ES Products”. This will give ImproChem access to the advances in RO, MBR and other technologies within the ES Product suite. GE will also have the right to consider forming a Joint Venture with ImproChem in the future.  
 
 
GE entered into a non-exclusive distribution arrangement with ImproChem in October 2011.  This new transaction builds on that solid foundation and both GE and ImproChem believe that the new arrangement provides greater opportunities than either company could offer alone.  It is well aligned with both companies’ business models, both have a good reputation in the region and a well-regarded compliance culture.  GE also has an experienced team of sales people in the field and strong regional capabilities that will complement ImproChem’s resources.
 
The transaction has been approved by the necessary regulatory authorities in South Africa.
 
I am particularly excited about what this transaction means for you, our valued Customers. Through the complementary combination of ImproChem and GE’s existing infrastructure and customer bases and the world leading technologies from GE, we will be in a position to offer you access to global references and technology support.
 
For our current ImproChem Customers this will lead to product changes to ensure that we provide you with leading edge GE technology. This will happen within the framework of your own “Management of Change” procedures. For the GE Customers there will be no change in your product applications. However, we will have to transition your account to ImproChem within the next three months. As we are merging the two sales forces you will experience no or minimal change in your day to day service commitment by your local representative.
 
I look forward to continuing our mutually beneficial business relationship into the future and assure you of our complete commitment and dedication at all times.  If you have any queries or concerns, please do not hesitate to contact our offices.  We will gladly make an appointment with you to discuss any questions or concerns that you may have.

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