Detrex Corporation Announces the Closing of the Sale of its Harvel Plastics Subsidiary and Declares a Special Dividend

SOUTHFIELD, Mich.--(BUSINESS WIRE)--

Detrex Corporation (Pink Sheets: DTRX) today announced that it has closed, effective January 1, 2012, the previously announced transaction to sell its subsidiary, Harvel Plastics, Inc. of Easton, PA to Georg Fischer AG for approximately $50 million in cash. Detrex Corporation's share of the after-tax sale proceeds is estimated to be $30 million.

The proceeds are subject to adjustments which will be determined when certain sales conditions are fulfilled. It is anticipated that the proceeds will be used to fund or reduce current Company obligations, and will place the Company in a strong financial condition going forward.

The Company also declared a special dividend of $2.00 per share to its shareholders. The dividend is payable on January 30, 2012 to shareholders of record as of January 20, 2012.

“The sale of Harvel allowed us to maximize its value for shareholders, while also focusing Detrex on the future and our engine for growth – The Elco Corporation,” said Detrex President and CEO Tom Mark. “We have a strong and profitable business with Elco and look forward to applying additional resources to the growing opportunity in chemicals and additives.”

About Detrex Corporation

Founded in 1925, Detrex Corporation through its subsidiary The Elco Corporation is a leading manufacturer of high performance specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid.

Forward Looking Statements

Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). The words “believe,” “expect,” “anticipate,” “estimate,” “guidance,” “target” and similar expressions identify forward-looking statements. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements. Certain risks and uncertainties are identified from time to time in the Company's reports. Some factors that could cause results to differ materially from those projected in the forward-looking statements include: market conditions, environmental remediation costs, pension expense and funding requirements, liquidation value of assets, and marketability of real estate and the market value and future liquidity of Detrex stock. The Company claims the protection of the safe harbor for forward-looking statements contained in the 1995 Act.