Acquisition

September 1, Zurich, RADD, AG, the Swiss chemical company purchased the European
polypropylene business of Royal Chemical Industries, PL.C of Britain. No price was disclosed,
but RCI said the deal represented 1 to 2 percent of its net assets and would be paid in cash. Based
on net assets, the price would be between $ 100 million and $ 160 million. The acquisition
includes RCI production plants in England, Denmark, Norway, and Poland. The plants alone are
valued at $ 60 million to $ 80 million. Polypropylene, a though, flexible plastic, has uses that
range from rope fibers to bottles.

1. RADD is probably located in

a. England
b. Denmark
c. Switzerland
d. Poland

2. According to the article, what is used to make rope fibers ?

a. Hemp
b. Steel
c. Cotton
d. Polypropylene

3. How much will RADD pay for RCI ?

a. $ 80 million
b. Between $ 100 and $ 160 million
c. $ 100 million
d. Between $ 60 and $ 80 million

4. Where is RCI’s head office ?

a. Norway
b. Britain

1
 c. Denmark
d. Poland

5. What are the terms of the deal ?

a. Payment in cash
b. 2 % of gross assets
c. Payment in stock
d. 1 % down payment