UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
__________________________________________
UNITED STATES OF AMERICA,
Plaintiff,
v.
ALCOA INC., ACX TECHNOLOGIES,
INC., and GOLDEN ALUMINUM
COMPANY,
Defendant.
__________________________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Civil Action No.: 99 2943
Filed: Nov 5, 1999
|
HOLD SEPARATE STIPULATION AND ORDER
It is hereby STIPULATED by and between the undersigned parties, subject to
approval and entry by the Court, that:
I.
DEFINITIONS
As used in this Hold Separate Stipulation and Order:
- "Alcoa" means defendant Alcoa Inc., a Pennsylvania corporation with its headquarters
in Pittsburgh, Pennsylvania, and its successors, assigns, subsidiaries, divisions, groups, affiliates,
partnerships and joint ventures, and directors, officers, managers, agents, and employees.
- "ACX" means ACX Technologies, Inc., a Colorado corporation with its
headquarters in Golden, Colorado, and its successors, assigns, subsidiaries, divisions, groups,
affiliates, partnerships and joint ventures, and directors, officers, managers, agents, and
employees.
- "Golden" means Golden Aluminum Company, a wholly owned subsidiary of
ACX, with two principal aluminum sheet manufacturing facilities located in Fort Lupton,
Colorado, and San Antonio, Texas, and its successors, assigns, subsidiaries, divisions, groups,
affiliates, partnerships and joint ventures, and directors, officers, managers, agents, and
employees.
- "Fort Lupton Assets" means all assets included within Golden's Fort Lupton,
Colorado operation including:
- all tangible assets, including the Fort Lupton manufacturing facility located at 1405 E.
14th Street, Fort Lupton, Colorado 80621-0207 ("the Fort Lupton Facility") and the real
property on which the Fort Lupton Facility is situated; any facilities used for research and
development activities, including Golden Engineering, AG, a Swiss company, and GAC
Technology, a Colorado corporation, both of which provide engineering support to the Fort
Lupton Facility ("the Engineering Facilities"), and any real property associated with those
facilities; manufacturing assets relating to the Fort Lupton Facility and to the Engineering
Facilities, including capital equipment, vehicles, supplies, personal property, inventory, office
furniture, fixed assets and fixtures, materials, on-site warehouses or storage facilities, and other
tangible property or improvements; all licenses, permits and authorizations issued by any
governmental organization relating to the Fort Lupton Facility and to the Engineering Facilities;
all contracts, agreements, leases, commitments and understandings pertaining to the operations
of the Fort Lupton Facility and of the Engineering Facilities; supply agreements; all customer
lists, accounts, and credit records; and other records maintained by Golden in connection with
the operations of the Fort Lupton Facility and of the Engineering Facilities;
- all intangible assets, including but not limited to all patents, licenses and sublicenses,
intellectual property, trademarks, trade names, service marks, service names, technical
information, know-how, trade secrets, drawings, blueprints, designs, design protocols,
specifications for materials, specifications for parts and devices, safety procedures for the
handling of materials and substances, quality assurance and control procedures, design tools and
simulation capability, and all manuals and technical information Golden provides to its
employees, customers, suppliers, agents or licensees in connection with the operations of the
Fort Lupton Facility and of the Engineering Facilities; except that Alcoa may retain a
non-exclusive, non-transferable, royalty-free license to use all patents, licenses, and sublicenses,
intellectual property, technical information, know-how, trade secrets, specifications for
materials, and quality assurance and control procedures necessary to operate the block caster at
Golden's San Antonio, Texas manufacturing facility ("the San Antonio block caster"), provided,
however, that if Alcoa sells the San Antonio block caster to ACX Technologies, Inc. or an
affiliate of ACX Technologies, Inc., it may provide ACX Technologies, Inc. or the ACX
Technologies, Inc. affiliate with a non-exclusive, non-transferable, royalty-free license for use
solely in connection with the operation of the San Antonio block caster; and
- all research data concerning historic and current research and development efforts
relating to the operation of the Fort Lupton Facility and of the Engineering Facilities, including
designs of experiments, and the results of unsuccessful designs and experiments.
- "Lid stock" means an aluminum sheet product from which the ends, tabs and
pull-off lids of food and beverage cans are made.
II.
OBJECTIVES
The Final Judgment filed in this case is meant to ensure Alcoa's prompt
divestiture of the Fort Lupton Assets for the purpose of maintaining
a viable competitor in the manufacture and sale of lid stock to remedy
the effects that the United States alleges would otherwise result from
Alcoa's proposed acquisition of Golden. This Hold Separate Stipulation
and Order ensures, prior to such divestiture, that the Fort Lupton Assets,
which are being divested, be maintained as an independent, economically
viable, ongoing business concern, and that competition is maintained
during the pendency of the divestiture.
III.
HOLD SEPARATE PROVISIONS
Until the divestiture required by the Final Judgment has been accomplished:
- Alcoa shall preserve, maintain, and operate the Fort Lupton Assets as an independent
competitor with management, research, development, production, sales and operations held
entirely separate, distinct and apart from those of Alcoa. Alcoa shall not coordinate the
manufacture, marketing or sale of products from the Fort Lupton Assets with its existing lid
stock business. Within twenty (20) calendar days of the filing of the Complaint in this matter,
Alcoa will inform plaintiff of the steps taken to comply with this provision.
- Alcoa shall take all steps necessary to ensure that the Fort Lupton Assets will be
maintained and operated as an independent, ongoing, economically viable and active competitor
in the manufacture and sale of lid stock; that the management of the Fort Lupton Assets will not
be influenced by Alcoa, and that the books, records, competitively sensitive sales, marketing and
pricing information, and decision-making associated with the Fort Lupton Assets will be kept
separate and apart from the operations of Alcoa. Alcoa's influence over the Fort Lupton Assets
shall be limited to that necessary to carry out Alcoa's obligations under this Order and the Final
Judgment. Alcoa may receive historical aggregate financial information (excluding capacity or
pricing information) relating to the Fort Lupton Assets to the extent necessary to allow Alcoa to
prepare financial reports, tax returns, personnel reports, and other necessary or legally required
reports.
- Alcoa shall use all reasonable efforts to maintain lid stock manufacturing and
sales levels at the Fort Lupton Facility, and to maintain research and development activities and
engineering support at the Engineering Facilities. Alcoa shall maintain at current or previously
approved levels, whichever are higher, internal research and development funding, promotional,
advertising, sales, technical assistance, marketing and merchandising support for the Fort Lupton
Assets.
- Alcoa shall provide and maintain sufficient working capital to maintain the Fort Lupton
Assets as an economically viable, ongoing business.
- Alcoa shall provide and maintain sufficient lines and sources of credit to maintain the
Fort Lupton Assets as an economically viable, ongoing business.
- Alcoa shall take all steps necessary to ensure that the Fort Lupton Facility is fully
maintained in operable condition at no lower than its current rated capacity, and shall maintain
and adhere to normal repair and maintenance schedules for the Fort Lupton Facility.
- Alcoa shall not, except as part of a divestiture approved by plaintiff, remove, sell,
lease, assign, transfer, pledge or otherwise dispose of or pledge as collateral for loans, any of the
Fort Lupton Assets, including the intangible assets that are described in Section II of the Final
Judgment.
- Alcoa shall maintain, in accordance with sound accounting principles, separate, true,
accurate and complete financial ledgers, books and records that report, on a periodic basis, such
as the last business day of every month, consistent with past practices, the assets, liabilities,
expenses, revenues, income, profit and loss of the Fort Lupton Assets.
- Until such time as the Fort Lupton Assets are divested, except in the ordinary course of
business or as is otherwise consistent with this Hold Separate Agreement, Alcoa shall not hire,
transfer or terminate, or alter, to the detriment of any employee, any current employment or
salary agreements for any Golden employees who on the date of the signing of this Agreement
work for the Fort Lupton Facility, or for the Engineering Facilities, unless such individual has a
written offer of employment from a third party for a like position.
- Alcoa shall take no action that would interfere with the ability of any trustee appointed
pursuant to the Final Judgment to complete the divestiture pursuant to the Final Judgment to a
suitable purchaser.
- This Hold Separate Stipulation and Order shall remain in effect
until the divestiture required by the Final Judgment is complete,
or until further Order of the Court.
Respectfully submitted,
FOR PLAINTIFF
UNITED STATES OF AMERICA:
_______________/s/________________
Nina B. Hale
Washington Bar # 18776
Laura M. Scott
Attorneys
Antitrust Division
U.S. Department of Justice
325 Seventh St., N.W., Suite 500
Washington, DC 20004
(202) 307-6351
Dated this _5th_ day of November, 1999.
|
FOR DEFENDANT
ALCOA, INC.:
_______________/s/________________
W. Randolph Smith,
Crowell & Moring
1001 Pennsylvania Avenue, N.W.
Washington, DC 20004-2595
(202) 624-2700
FOR DEFENDANTS
ACX Technologies, Inc. and Golden Aluminum Company:
_______________/s/________________
W. Todd Miller
Baker & Miller
915 15th Street, Suite 1000
Washington, DC 20005-2302
|
ORDER
It is SO ORDERED, this ______ day of __________, 1999.
|
_______________________________
United States District Court Judge |
|