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W. R. Grace and Company

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W. R. Grace and Co.
Company typeSubsidiary
IndustryRaw materials
Founded1854;170 years ago(1854)
FounderWilliam Russell Grace
HeadquartersColumbia, Maryland,U.S.
Key people
Hudson La Force, President &CEO
Bhavesh V. (Bob) Patel, CEO effective January 2022
ProductsSpecialty chemicals
RevenueDecrease$1.729 billion (2020)
Decrease-$2 million (2020)
Total assetsDecrease$3.765 billion (2020)
Total equityDecrease$234 million (2020)
Number of employees
4,000 (2020)
ParentStandard Industries
Websitewww.grace.com
Footnotes / references
[1]
W. R. Grace & Co. 13 spoke 15 "x8.5" aluminum wheel, OEM, 1978Chevrolet K5 BlazerCheyenne

W. R. Grace and Co.is an American chemical business based inColumbia, Maryland.It producesspecialty chemicalsand specialty materials in two divisions: Grace Catalysts Technologies, which makespolyethyleneandpolypropylenecatalystsand related products and technologies used inpetrochemical,refining,and other chemical manufacturing applications, and Grace Materials and Chemicals, which makes specialty materials, including silica-based and silica-alumina-based materials, which are used in commercial products such assunscreen[2]and in chemical process applications.[1]

For much of its early history, Grace's main business was in South America, inmaritime shipping,railroads, agriculture, and silver mining, with 30,000 employees in Peru.

In the 1950s, Grace began to diversify and grew into aFortune 100worldwideconglomerate.

After emerging from a prolonged bankruptcy period of 12 years in 2014, the company spun off its other major operating divisions. In 2015, Grace separated into two independent public companies. Its Catalysts and Material Technologies business segments remained in Grace, and what would later becomeGCP Applied TechnologiesInc. held its Construction Products and Darex Packaging Technologies businesses.

In September 2021,Standard Industriesacquired Grace (the Catalysts and Material Technologies business segments).[3]

TheW.R. Grace Buildingin New York City, where the company had its headquarters before relocating.

History[edit]

The company was founded in 1854 inPerubyWilliam Russell Graceat the age of 22.[1][4][5][6]Grace leftIrelandduring theGreat Famine[7]and traveled to South America with his family. He went first to Peru to work as aship chandlerfor the firm ofBryceand Company, to the merchantmen harvestingguano,used as afertilizerandgunpowderingredient due to its high levels of phosphorus and nitrogen.

His brother,Michael P. Grace,joined the business, and in 1865 the company name was changed to Grace Brothers & Co. The company established headquarters inNew York Cityin 1865.[4]Working in fertilizer andmachinery,the company was chartered in 1872 and incorporated in 1895.

In 1904,Michael P. Gracebecame president after the death of William Grace.

The company expanded, creating business divisions including Grace Shipping, Grace Cruise Lines, Grace Petroleum, Grace Drilling, and Grace Healthcare. Grace acquired and combined other companies to create and expand businesses such asBarilla Pasta,FAO Schwarz,Ingersoll-Rand,Roto-Rooter,Del Taco,and Cartavio Distilleries.

In 1914, it createdGrace National Bank.[4]

In 1945, the founder's grandson,J. Peter Grace,became president. Under his leadership, the company owned the country's largest oil-drilling fleet, ran the world's largest cattle ranch and the world's largest cocoa bean company, sugar plantations in Peru, cotton mills in Chile, silver, clay, phosphate, tin mines and processed rare earths for the US nuclear arms program. Grace owned a food group that operated 900 chain restaurant locations, and a retail division with chains for sporting goods, home improvement, jewelry, aftermarket automotive parts and leather goods. The company operated fertilizer companies, confectioners and beverage companies, includingMiller Brewing.Grace pioneered genetic engineering at its Agricetus division in Wisconsin, and human gene therapy at its Aurigent Pharmaceuticals group. The company constructed a 160-acre research complex, the Washington Research Center, in Columbia, Maryland. It also commissioned the New York City skyscraper, theW. R. Grace Building,as its world headquarters, in midtown Manhattan, where it directed worldwide operations, including Grace Container Products.

In 1953, the company became apublic companyvia aninitial public offeringon theNew York Stock Exchange.In 1954, the company acquired Davison Chemical Company and Dewey & Almy Chemical Company, entering the specialty chemicals and specialty materials industries and establishing the basis for the current product lines.[4][1]

In 1987, Grace built a can sealant plant in Minhing, China, nearShanghai,becoming the first wholly foreign-owned, private company to do business in ThePeople's Republic of China.[4]

In February 2016, Grace completed thecorporate spin-offofGCP Applied Technologies.[8]

In July 2016, the company acquired a catalysts business fromBASF.[9]

In June 2021, the company acquired a unit fromAlbemarle Corporation.[10]

In September 2021,Standard Industriesacquired the company.[11][12][13]

Incorporation[edit]

There are two accounts of the incorporation date of W. R. Grace & Co. According toThe New York Times,the company was incorporated as part of the estate and successor planning in 1895. The three brothers consolidated most of their holdings into a new private company, incorporated inWest Virginia,called W. R. Grace & Company. The consolidation involved W. R. Grace & Co. of New York, Grace Brothers & Co. of Lima, Peru, Grace & Co. ofValparaiso Chile,William R. Grace & Co. of London, and J. W. Grace & Co of San Francisco.[14]

According to its website, W. R. Grace & Co. was incorporated in Connecticut in 1899. The listed capital of $6 million did not include Grace Brothers & Co. Limited in London or its branches in San Francisco, Lima, andCallao, Peru,nor Valparaiso, Santiago, andConcepción, Chile.[4]

J. Louis Schaefer, who joined the company as a boy, played a key role in not only W. R. Grace & Company, in which he became a vice president, but also as president ofGrace National Bank.Schaefer was a co-executor of the estate of Michael Grace with William's son and corporate successor,Joseph Peter Grace, Sr..J. Louis Schaefer died in 1927.[15]

Shipping[edit]

The Grace Line acquire thePacific Mail Steamship Companyin 1916
Grace Line Advertisement (1928)
Grace LineWorld War IIposter

For most of its history, Grace's main business wascargoshipping, operating theGrace Line.To move cargo from Peru toNorth AmericaandEurope,includingguanoandsugar,and noticing the need for other goods to be traded, William Grace founded a shipping division. Grace Line began service in 1882,[16]withports of callbetween Peru and New York. Regular steamship service was established in 1893, with a subsidiary called the New York & Pacific Steamship Co., that operated under the British flag. Ships built outside the United States before 1905 were banned from the US registry. US-flag service began in 1912 with the Atlantic and Pacific Steamship Company. The activities of both companies and the parent firm were consolidated into the Grace Steamship Company beginning in 1916. The firm originally specialized in traffic to the west coast of South America then later expanded into the Caribbean.

In 1916, Grace acquired a controlling interest in thePacific Mail Steamship Company.In 1921, Pacific received five 535 ft. President class ships from theUnited States Shipping Boardfor transpacific operation. In 1923, the US Shipping board decided to place the five ships up for bid andDollar Shipping Companywon the bid. With no large ships for the transpacific operations, Grace sold the Pacific Mail, its registered name, and goodwill to Dollar. Now without a transpacific service, Grace did not need the six intercoastal freighters and sold them to theAmerican Hawaiian Line.At this time, Grace formed the Panama Mail Steamship Company, to operate the smaller ships that were formerly owned and used by the Pacific Mail in the Central American trade. These ships were not involved in the sale to Dollar.[17]

On the death of William R. Grace in 1904, he was succeeded by William L. Sauders as company president followed byJoseph Peter Grace, Sr.(1872–1950) who became president in 1907. In 1938 the Colombian Line merged with Grace Line bringing an end to the Colombian Line.[18]DuringWorld War II,Grace Lines operated transport for the U.S.War Shipping Administration,including theSS Sea Marlin.[19]

J. Peter Gracetook over management of the company after his father suffered astrokein 1945. After the war, the Grace line operated 23 ships totaling 188,000 gross tons, and 14 more onbareboat charters.In 1954 the company bought Davison Chemical Company (founded by William T. Davison as Davison, Kettlewell & Company in 1832), and the Dewey & Almy Chemical Company (founded in 1919 by Bradley Dewey and Charles Almy).

In 1960, the Grace Line, inspired by the pioneering efforts ofSea-Land Service,Matson Navigation,andSeatrain Lines,sought to begin containerizing its South American cargo operations by converting the conventional freightersSanta ElianaandSanta Leonorinto fully cellularcontainer ships.The effort was stymied by the opposition of longshoremen in New York and Venezuela, and the ships were repeatedly laid up idle and were ultimately sold to the domestic container line Sea-Land Service in 1964.[20][21]In 1963 Grace made a second attempt to containerize its South American trade when it ordered the four M-class combination passenger-cargo shipsSanta Magdalaena,Santa Maria,Santa Mariana,andSanta Mercedeswith partial cellular holds, but they were no more successful as mixing conventional break-bulk cargo and containers in the same ship negated the operating economies that full containerization promised.[22]

In 1970, Grace Line was sold toPrudential Linesfor $44.5 million, with the merged company renamed Prudential Grace Line.[23]It was taken over by Delta Steamship Lines in 1978, thereby extinguishing the name Grace in ocean shipping.[24]Subsequently, Delta Steamship Lines was acquired and consolidated byCrowley Maritimein 1982.

Property nationalized[edit]

In 1974, thePeruviangovernmentnationalizedproperties in Peru owned by the company. Harold Logan, Grace's executive vice president, stated the company would join in governmental-level talks over compensation of expropriated American concerns. The loss of Grace's properties in Peru began in 1969 when 25,000 acres of sugarcane plantations were taken over in agrarian reform. The sugar lands were atParamonga,110 miles north ofLima,and at Cartavio, nearTrujillo,200 miles farther up the coast. Grace retained small mining operations producing copper, tin, and silver, in southern Peru, about 100 miles north ofJuliaca.Jose E. Flores, head of W. R. Grace S.A. Peru, closed the mining operations for Grace in Latin America when the government of Peru nationalized the remaining interests.[25]

Airline[edit]

Panagra AirwaysBoeing 727-23

In 1928, Grace and Pan American Airways jointly formedPan American-Grace Airwaysknown as Panagra, establishing the first air link between North and South America, which began operation in 1929.[26]In 1967, Panagra merged withBraniff International Airways.[27]

Retail[edit]

Orchard Supply Hardware

Prior to 1985, W. R. Grace operated a retail division. Among its brands wereOrchard Supply HardwareandHome Centers West(sold toWickes Companiesin 1986),[28]Handy City home improvement stores,Home Quarters Warehouse,J. B. Robinson Jewelers,Sheplers Western Wear, andHerman's World of Sporting Goodswhich it had acquired in 1970. These were sold to various buyers in 1985.[29]

Food and Beverage Industry[edit]

Coco's Bakery Restaurant

Food[edit]

In the 1980s, W. R. Grace had owned the following restaurants:

American Cafe,Del Taco,[30]Coco's Bakery,[31]El Torito,Hungry Tiger and various restaurants it had purchased fromGeneral Mills.[32]

Beverage[edit]

In 1966, the company bought a 53% controlling stake inMiller Brewingfor $36 million from Lorraine Mulberger, the granddaughter ofFrederick Miller,who sold the stake for religious reasons.[33]The company sold the Miller stake in 1969 toPhilip Morrisfor $130 million, after first cancelling an agreed-upon sale toPepsiCofor $120 million. This resulted in a lawsuit.[34][35]

Headquarters[edit]

The company has its headquarters inColumbia, MD,anunincorporatedcensus-designated placeinHoward County, Maryland.[36][37]Although W. R. Grace commissioned theW. R. Grace BuildinginNew York City,built in 1971, the company no longer has any offices at that location.

Previously, the company had its headquarters inBoca Raton, Florida.[38][39]Prior to its closing, the Boca Raton headquarters had about 130 employees. On January 27, 1999, it announced it was moving its administrative staff to the Columbia office and closing the Boca Raton headquarters.[40]About 40 of the employees went to Columbia, and some employees went toCambridge, Massachusetts.[38]In 2014, the company emerged from a 13-year bankruptcy case stemming from asbestos claims and immediately built a new 90,000 sq ft headquarters building on its 160-acre Columbia campus.[41]

Contamination incidents[edit]

The company has been involved in several controversial incidents of proven and alleged corporate crimes, including exposing workers and residents of an entire town toasbestoscontamination inLibby[42]andTroy,Montana,water contamination (the basis of the book and filmA Civil Action) inWoburn, Massachusetts,and anActon, Massachusetts,Superfundsite.

Asbestos[edit]

While Grace no longer makesasbestosor related products, at the time of its bankruptcy in 2001 it faced over 65,000 asbestos-related personal injury lawsuits involving over 129,000 claims.[43]

On April 2, 2001, Grace and its subsidiaries in the United States filed voluntary petitions for Chapter 11 Bankruptcy reorganization in the Bankruptcy Court for the District of Delaware.[44]The company was trying to find a resolution through federal court-supervised reorganization in response to the quickly growing number of asbestos-related bodily injury claims.[45]

On September 19, 2008, Grace filed a revised plan of reorganization to the same court, jointly with the asbestos injury claimants.[46]In January 2011, the court issued an order in favor of the new plan[47]and in January 2012, the court denied all appeals and affirmed the plan.[48]After a motion for reconsideration, the plan was reaffirmed on June 11, 2012.[49][50]

On February 3, 2014, Grace emerged from the asbestos-related Chapter 11 bankruptcy, which took more than 12 years.[51][52]Under the plan of reorganization approved by the court, all parties filings the asbestos-related claims were to direct their inquiry to either an asbestos personal injury trust or a separate asbestos property damage trust.[53]

In popular culture[edit]

  • The movieA Civil Action,starringJohn Travolta,was based on the Grace groundwater contamination lawsuits inWoburn, Massachusetts.[54]
  • ThePBStelevision showP.O.V.,which highlights independent films, in August 2007 premiered the movieLibby, Montanawhich documents the thousands of people inLibby, Montana,that have been exposed to and are suffering the effects of asbestos exposure. The show also discusses the criminal indictments of many Grace executives for covering up asbestos related illnesses and deaths.
  • PBS also airedDust to Dust,a documentary produced by Michael Brown Productions, Inc. in 2002. "Dust to Dust" reports on the more than 200 people who have died from asbestos exposure in Libby, Montana. The film focuses on the plights of several of these individuals and the damage done over almost 30 years while the mine was operated by W. R. Grace.[55]
  • NPRaired a piece onAll Things Considereddiscussing the criminal charges against W. R. Grace. A U.S. attorney general alleges that the company and managers of the mine in Libby, Montana, knew about the dangers of the asbestos they were dumping into the air for over 20 years.[56]
  • On February 19, 2008, the NPR-produced radio showHere and Nowbroadcast a story about the filmLibby, Montana,which details the asbestos contamination in the town of that name.
  • On April 22, 2009, the television and radio programDemocracy Now!broadcast two segments on the trial of W. R. Grace and some of its employees related to the asbestos contamination in Libby, Montana.[57][58]Democracy Now! also broadcast a follow-up interview on May 12, 2009.[59]This interview focused on reactions to the not-guilty verdict in the federal trial, where W. R. Grace and three former executives were acquitted on charges of knowingly exposing workers and townspeople to asbestos, and subsequently participating in a cover-up.

Neem patent[edit]

In 1995, theEuropean Patent Office(EPO) granted a patent on an anti-fungal product derived from theneem treeto theUnited States Department of Agricultureand W. R. Grace. The Indian government challenged the patent when it was granted, claiming that the process for which the patent had been granted had been in use in India for more than 2,000 years. In 2000, the EPO ruled in India's favour, but W. R. Grace appealed, claiming thatprior artabout the product had never been published in a scientific journal. On March 8, 2005, that appeal was lost and the EPO revoked the Neem patent.[60]

See also[edit]

References[edit]

  1. ^abcd"W. R. Grace and Co. 2020 Form 10-K Annual Report".U.S. Securities and Exchange Commission.
  2. ^"Grace Showcases its Latest Eco-Friendly and High-Performance Solutions at CHINACOAT 2020".Coatings World.August 12, 2020.
  3. ^"Our History".grace.com.Retrieved2023-07-04.
  4. ^abcdef"Our History".Grace.
  5. ^Hagerty, James R. (February 11, 2015)."W.R. Grace: The End of an Empire".The Wall Street Journal.
  6. ^McNamara, Pat (December 19, 2018)."Who's Buried in Catholic Cemeteries: Mayor William R. Grace".Patheos.
  7. ^"J.P. GRACE DIES".The Washington Post.April 21, 1995.
  8. ^WELLS, CARRIE (February 1, 2016)."W.R. Grace's stock slides in advance of split this week".
  9. ^Wilen, Holden (June 1, 2021)."W.R. Grace closes $570 million acquisition ahead of own takeover".American City Business Journals.
  10. ^Wilen, Holden (July 1, 2016)."W.R. Grace completes acquisition of German catalyst business".American City Business Journals.
  11. ^DINSMORE, CHRISTOPHER (September 22, 2021)."Standard Industries completes purchase of Columbia-based W.R. Grace & Co".The Baltimore Sun.
  12. ^"Standard Industries Completes Acquisition of Grace"(Press release).Business Wire.September 22, 2021.
  13. ^Wilen, Holden (September 22, 2021)."Another one bites the dust: One fewer Baltimore-area public company as $7B W.R. Grace deal closes".American City Business Journals.
  14. ^"The Grace firms consolidated"(PDF).The New York Times.January 11, 1895.
  15. ^"J.L. SCHAEFER LEFT $2,962,588 ESTATE; Family Receives Fortune of Vice President and Treasurer of W.R. Grace & Co. SECRETARY GETS LEGACIES Judge Robert J. Wilkin Bequeathed $420,261--Widow and Nephew Get Most of It. Judge Wilkin Left $420,261".The New York Times.February 21, 1929.
  16. ^"House Flags of U.S. Shipping Companies: G".
  17. ^Grace, Michael L. (May 18, 2010)."LOOKING AT THE GRACE LINE".
  18. ^Colombian Line merges with Grace Line: The Ship List- Retrieved 2013-11-07
  19. ^"Troopships of World War II - US Army Center of Military History"(PDF).United States Army.
  20. ^Cudahy, 2006, pp. 70-72, 89-90
  21. ^Levinson, 2006, pp. 67, 130
  22. ^Cudahy, 2006, p. 90
  23. ^"Grace Line Gets New Name and a New President".The New York Times.January 20, 1970.
  24. ^Levinson, 2006, p. 226
  25. ^"Peru Nationalizes 4 W.R. Grace Subsidiaries".The New York Times.February 16, 1974.
  26. ^"Business: Reconciliation".Time.August 12, 1946.
  27. ^Philip; Brown."Pan American World Airways System: world's most experienced airline".Rare & Special e-Zone.doi:10.14711/spcol/991013158535303412.Retrieved2023-08-26.
  28. ^Times, Special to the New York (1986-05-06)."WICKES TO ACQUIRE 2 W.R. GRACE UNITS".The New York Times.ISSN0362-4331.Retrieved2023-07-10.
  29. ^Talley, Jim (December 11, 1985)."W.R. GRACE TO SELL ITS RETAIL DIVISION".Sun-Sentinel.
  30. ^"W.R. Grace sells Del Taco to PepisCo's Taco Bell - UPI Archives".UPI.Retrieved2023-08-26.
  31. ^Horovitz, Bruce (1986-02-12)."W. R. Grace Will Sell 124 Units in Restaurant Group".Los Angeles Times.Retrieved2023-08-26.
  32. ^Stone, Peter H. (1985-12-08)."Changing Course at W. R. Grace".Washington Post.ISSN0190-8286.Retrieved2023-08-26.
  33. ^"A Deal Between Grandchildren".Time.September 30, 1966.Archivedfrom the original on September 30, 2007.
  34. ^Reckert, Clare M. (June 12, 1969)."Grace Cancels Miller Purchase; Pepsico Was to Sell COMPANIES PLAN MERGER ACTIONS".The New York Times.
  35. ^Abele, John J. (June 20, 1969)."W. R. Grace Is Sued by Pepsico; Miller Sale Is at Issue W. R. GRACE SUED FOR MILLER SALE".The New York Times.
  36. ^"Grace in MarylandArchivedJuly 3, 2011, at theWayback Machine."W.R. Grace and Company. Retrieved on June 29, 2011." Corporate Headquarters & Grace Davison Headquarters, W.R. Grace & Co. 7500 Grace Drive, Columbia, MD 2104 "
  37. ^"Columbia CDP, MarylandArchivedJune 6, 2011, at theWayback Machine."U.S. Census Bureau.Retrieved on June 29, 2011.
  38. ^ab"Grace Announces Relocation To Columbia, MarylandArchivedJuly 3, 2011, at theWayback Machine."W.R. Grace and Company. Retrieved on June 29, 2011." The restructuring will entail a relocation of approximately 40 people, including senior management, from Grace's Boca Raton, Florida office to its Columbia, Maryland site. A few positions will be relocated to another Grace office in Cambridge, Massachusetts. "and" Following the relocation, Grace will close its headquarters office at 1750 Clint Moore Road in Boca Raton, which currently employs approximately 130 people. "
  39. ^2000 U.S. Census Block Map of Boca Raton, FloridaU.S. Census Bureau.Retrieved on April 3rd, 2013.
  40. ^HEROUX POUNDS, MARCIA (January 28, 1999)."W.R. Grace To Leave Boca".Sun Sentinel.
  41. ^Lavoie, Luke (October 31, 2014)."W.R. Grace opens new headquarters in Columbia".The Baltimore Sun.
  42. ^"NIOSH Research in Libby, Montana: Job-Related Asbestos Exposures and Health Effects in Mining and Milling of Vermiculite".Centers for Disease Control and Prevention.September 21, 2000.
  43. ^"In re W.R. Grace & Co".Casetext.
  44. ^"W. R. Grace Co, Form 10-K405, Filing Date Apr 16, 2001".secdatabase.com.
  45. ^"Form 10-K, W. R. Grace & Co".U.S. Securities and Exchange Commission.December 2004.Public DomainThis article incorporates text from this source, which is in thepublic domain.
  46. ^"W. R. Grace Co, Form 8-K, Current Report, Filing Date Sep 23, 2008".U.S. Securities and Exchange Commission.
  47. ^"W. R. Grace Co, Form 8-K, Current Report, Filing Date Feb 10, 2011"(PDF).U.S. Securities and Exchange Commission.Public DomainThis article incorporates text from this source, which is in thepublic domain.
  48. ^"W. R. Grace Co, Form 8-K, Current Report, Filing Date Oct 31, 2012".U.S. Securities and Exchange Commission.
  49. ^"W. R. Grace Co, Form 8-K, Current Report, Filing Date Jul 25, 2012"(PDF).U.S. Securities and Exchange Commission.
  50. ^"W. R. Grace Co, Form 8-K, Current Report, Filing Date Feb 6, 2013".U.S. Securities and Exchange Commission.
  51. ^Brickley, Peg (February 3, 2014)."5 Takeaways From the W.R. Grace Bankruptcy".The Wall Street Journal.
  52. ^"W. R. Grace & Co, Form 8-K, Current Report, Filing Date Feb 7, 2014".U.S. Securities and Exchange Commission.
  53. ^"W. R. Grace & Co, Form 10-K, Annual Report, Filing Date Feb 27, 2014".U.S. Securities and Exchange Commission.
  54. ^"The Ugly Truth: Mass. Superfund Sites Still Toxic Nearly 30 Years And More Than $1B Later".WBUR-FM.May 22, 2011.
  55. ^Brown, Michael.LIBBY, MONTANA - A TOWN & ITS PEOPLE IN PERIL.Archivedfrom the original on 2021-12-21 – viaYouTube.
  56. ^WITKOWSKY, KATHY (February 8, 2005)."W.R. Grace Charged in Asbestos Exposure Cases".NPR.
  57. ^"A Town Suffering for Generations: Decades of Asbestos Exposure by W.R. Grace Mine Leave Hundreds Dead, 1,200+ Sickened in Libby".Democracy Now!.April 22, 2009.
  58. ^"Environmental Crimes Trial Underway Against W.R. Grace for Widespread Asbestos Exposure in Montana Town".Democracy Now!.Archivedfrom the original on July 10, 2012.
  59. ^"W.R. Grace Acquitted in Libby, Montana Asbestos Case".Democracy Now!.May 12, 2009.
  60. ^"India wins landmark patent battle".BBC News.March 9, 2005.

External links[edit]

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