HARRISBURG, Pa., Nov. 20, 2006 (PRIMEZONE) -- Worldwide industrial services and products company Harsco Corporation (NYSE:HSC) announced today that it has acquired the Santiago, Chile-based company Moldajes y Andamios TH S.A., or MyATH, one of Chile's top three suppliers of rental formwork and scaffolding and related services to the construction, infrastructure and building maintenance sectors. The privately-held company, which for the past decade has served as the exclusive equipment representative in Chile for Harsco's Huennebeck division, gives Harsco a solid foothold for growing its Access Services segment presence in the expanding Chilean and Latin American markets. Harsco already has a strong presence serving the Latin American steel industry and other industrial sectors. The acquisition is expected to be accretive to Harsco's 2007 earnings. Terms were not disclosed.
MyATH employs approximately 100 people from centrally-located operations in Santiago. Its annual revenues of approximately $8 million are derived principally from the rental of Huennebeck concrete formwork equipment to a range of building construction and public infrastructure projects. Formwork is used to create poured concrete walls, floors, columns and other structures. The company also supplies a range of Huennebeck scaffolding equipment. Because its key products are of Huennebeck design, MyATH is already well-established in the Chilean market for providing top-quality equipment built to industry-leading standards. Harsco's substantial capital and technical resources are expected to further expand the company's prospects.
"This well-established business gives us a solid Access Services foundation in Latin America, a key region that we have identified for future growth as we expand Harsco's global footprint and increase our focus on strong emerging markets and economies," said Harsco President, CFO and Treasurer Salvatore Fazzolari. "We look to apply Harsco's significant know-how and resources and build on the more than $1 billion in worldwide sales we expect from our Access Services segment this year."
The acquisition comes at a time of steady expansion in Chile's construction market. The Chilean Construction Chamber estimates that Chile's construction requirements will continue to grow at a rate of four to seven percent annually through the end of this decade.
Harsco's Access Services segment is the world's foremost provider of access-related services to the non-residential construction, industrial plant maintenance, and energy markets. In addition to Huennebeck, the segment includes Harsco's international SGB Group division and its Patent division, which operates throughout North America. The Access Services segment is one of four Harsco business groups that provide mill services, access services, engineered products and services, and gas containment and control technologies to customers around the globe. The Company employs approximately 21,000 people in 45 countries of operation and recorded 2005 sales of approximately $2.8 billion. Additional information about Harsco, including its Access Services segment, can be found at www.harsco.com. Harsco's common stock is a component of the S&P MidCap 400 Index and the Russell 1000 Index.
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