Opinion ID: 2621550
Heading Depth: 1
Heading Rank: 1

Heading: Summary of the Corporate Transactions

Text: Amchem No. 1, a Pennsylvania corporation, had two distinct product lines: agricultural chemicals and metallic chemicals. The metallic chemicals, which help paint adhere to metal, were sold to car and airplane manufacturers, including Lockheed. Defendants insured both of Amchem No. l's product lines. In 1977, Union Carbide Corporation acquired Amchem No. 1 by stock purchase and merger. In 1979, Amchem No. 1, now a Union Carbide subsidiary, created a new corporation, also known as Amchem Products, Inc., but a Delaware corporation (Amchem No. 2). By resolution of its board of directors, Amchem No. 1 transferred all of its right, title and interest . . . in and to its domestic assets utilized in its metalworking business to Amchem No 2. [2] The board of directors of newly created Amchem No. 2 accepted the transfer from Amchem No. 1 of the assets, liabilities and goodwill utilized in its metalworking chemical activities. This transaction was a contract: the resolution of Amchem No. l's board of directors was an offer (see Dow v. River Farms Co. (1952) 110 Cal. App.2d 403, 243 P.2d 95; Hoge v. Lava Cap Gold Mining Corp. (1942) 55 Cal. App.2d 176, 130 P.2d 470) and the resolution of Amchem No. 2's board of directors explicitly accepted that offer. Although the 1979 contract referred to assets and liabilities, it did not specify what assets were transferred to Amchem No. 2, or what liabilities were assumed. After the 1979 contract, Amchem No. 1 (agricultural products) and Amchem No. 2 (metallic chemicals) were separate subsidiaries of Union Carbide. In 1980, however, Union Carbide sold all of the stock of Amchem No. 2 to plaintiff Henkel. By acquiring the stock of Amchem No. 2, Henkel acquired all of its assets and liabilities. After Henkel purchased Amchem No. 2, these two corporations merged. In 1986, Union Carbide sold Amchem No. 1 to Rhone Poulenc, Inc.; these two companies merged in 1992. Thus, it is undisputed that Henkel has succeeded to all of the rights and obligations of Amchem No. 2, and Rhone Poulenc (now known as Aventis CropScience USA, Inc.) has succeeded to all of the rights and obligations of Amchem No. 1.