HOUSTON, Jan. 4 /PRNewswire/ -- Pennzoil Company and Quaker State
Corporation (NYSE: KSF) announced the completion of a major restructuring,
including the spin off of Pennzoil's Products Group, that combines the
marketing, manufacturing and fast oil change businesses of Pennzoil with all
of Quaker State. The combined company, Pennzoil-Quaker State Company
(NYSE: PZL) trades on the New York Stock Exchange with the symbol PZL.
Pennzoil Company has been renamed PennzEnergy Company (NYSE: PZE) and
trades on the New York Stock Exchange with the symbol PZE. The company
continues as one of the largest U.S. based independent exploration and
production companies.
"We're very excited about the opportunities this transaction creates for
both companies. Pennzoil-Quaker State is the world's biggest automotive
consumer products company, while PennzEnergy is a large independent with
exceptional growth opportunities," said James L. Pate, chairman of both
companies and chief executive officer of the new Pennzoil-Quaker State
Company. "Separating the automotive consumer products company from our oil
and gas business creates two highly-focused, pure-play companies and allows
our shareholders to realize the full value of each business."
Stephen D. Chesebro', president and newly appointed chief executive
officer of PennzEnergy Company, said, "PennzEnergy emerges today as a focused
and well-positioned independent exploration and production company with high
quality assets and great growth potential."
PennzEnergy concentrates on three key geographic areas -- domestic
onshore, domestic offshore and international. The company has a substantial
domestic asset base and high potential international concessions that provide
a solid foundation for growth. PennzEnergy core domestic regions include
South Texas, West Texas, East Texas, South Louisiana and the Gulf of Mexico.
Internationally, PennzEnergy holds significant exploration and development
concessions in Azerbaijan, Egypt, Qatar and Venezuela.
James J. Postl, president and chief operating officer of Pennzoil-Quaker
State, said, "This merger brings together product lines from two companies
long recognized for quality and value. Our customers will immediately benefit
from the geographic and competitive strength this combination creates. What
we have created is an automotive consumer products company of world-class
stature, capable of bringing real value to the marketplace."
With annual revenues of $3.2 billion, Pennzoil-Quaker State is the world's
biggest automotive consumer products company. Its more than 1,300 products
include many number one brands, most notably the number one and number two-
selling brands of motor oils, Pennzoil(R) and Quaker State(R). The company
also owns the number one and number two fast oil change operations, Jiffy
Lube(R) and Q-Lube(R). Major brand automotive consumer products marketed by
the joint company include Slick 50(R), Rain-X(R), Blue Coral(R), Medo(R),
Gumout(R), Fix-a-Flat(R), Classic(R) Car Wax, Axius(TM) and others.
The combination of the marketing, manufacturing and fast oil change
businesses of Pennzoil with Quaker State is expected to generate cost savings
of $90 million to $125 million annually from the elimination of duplicate
functions, combined purchasing efficiencies, synergies in distribution and
marketing, and streamlining of general and administrative functions.
Pennzoil-Quaker State's unique business mix and geographic strengths will lead
to accelerated worldwide growth, increased financial and strategic flexibility
and strengthened merchandising. In connection with its program to generate
annual cost savings and record the effects of certain expenses and other
charges related to the spin-off and the merger, the new company expects to
take initial restructuring charges and incur other one-time expenditures of
approximately $220 million in aggregate.
With the restructuring complete, former Pennzoil Company shareholders now
own one share of Pennzoil-Quaker State Company common stock and one share of
PennzEnergy Company common stock for each share of common stock of Pennzoil
Company. In the merger, Quaker State shareholders received .8204 share of
Pennzoil-Quaker State Company in exchange for each share of Quaker State
Corporation.
SOURCE Pennzoil-Quaker State Company and PennzEnergy Company
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Related links:
http://www.pennzoil.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19981007/DAW022
or NewsCom, 213-237-5431. More photos are available at
http://www.Newscom.com
Company News On-Call:
http://www.prnewswire.com/comp/684550.html or fax,
800-758-5804, ext. 684550
CONTACT:
Ray Scippa for Pennzoil-Quaker State Company
and PennzEnergy Company, 713-546-8942
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