b"MIDWESTM I D W E S TROOFING CONTRACTORS ASSOCIATIONR O O F E RD::(~IE75t?;d 1000 Power &Light Bldg.,KansasCity, Missouri64105 May,1976 JUDGEORDERSDIVESTITUREOFPHILIPCAREY InApril1972JimWalterCorporation,ownerofCelotex,paid$73milliontoacquirethestockofPanacon,ownerofPhilipCarey.Thereafter PhilipCareywasabsorbedintoCelotexandceasedtoexistasaseparate competitivefactorintheroofingindustry. InJuly1974theFederalTradeCommission(FTC)chargedthatthis acquisitionviolatedthefederalantitrustlawssinceitsubstantial ly lessenedcompetitionandtendedtocreateamonopoly.Thelegalbattle wasjoined.TheFTChasjust wonthefirstroundandperhapsthe bout.AdministrativeLawJudgeDufresneina67-pageopinionhasheld thattheacquisitionviolatedtheantitrustlawsspecifically ,Section7oftheClaytonAct. ThefollowingexcerptsareincludedamongtheJudge's143Findings ofFact: ,__TheacquisitionofPanaconbyCelotexintensifiedconcen-trationinthealreadyhighlyconcentratedasphaltandtar roofingproductsindustry,andcontributedsignificantlytoan industry-widetrendtowardincreasedconcentration. BothCelotexandPanacon'sPhilipCareydivisionmanufacturedandshippedsubstantialquantitiesofasphaltand tarroofingproductsin1970,1971,and1972,andbothhad substantialmarketsharesinthenationalmarketinthose years.Priortotheirmergerbothcompanieswereregardedas majorcompetitorsengagedindirectcompetitionwithone another.PhilipCareycompetedheavilyanddirectlywith Celotexinitsprincipalmarketingareas.PhilipCarey/ Panaconwasrecognizedasavigorouscompetitoroffering goodserviceandabroadlineofqualitymerchandiseat competitiveprices.TheacquisitioneliminatedPhilip Carey/Panaconasasubstantial,competitiveforceinthe asphaltandtarroofingindustryinnationalandregional markets. Between1970and1972,PhilipCarey/PanaconandCelotex competedforindividualaccountsdistributorsandroofing contractorsoverawidearea.Roofingcontractorsfrom KansasCity,Missouri,andDayton,Ohio,describedthedirect competitionbetweenCelotexandPhilipCarey_ intheir /Panacon areas."