SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
SCHEDULE 13G
----------------
INFORMATION STATEMENT PURSUANT TO RULES 13d-1 AND 13d-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934
W. R. Grace & Co.
(NAME OF ISSUER)
Common Stock, $0.01 par value
(TITLE OF CLASS OF SECURITIES)
38388F108
(CUSIP NUMBER)
August 24, 2004
(Date of Event which requires Filing of this Statement)
Check the appropriate box to designate the rule
pursuant to which this Schedule is filed:
[ ] Rule 13d-1(b)
[x] Rule 13d-1(c)
[ ] Rule 13d-1(d)
(Page 1 of 16 Pages)
------------------
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
CUSIP No. 38388F108 13G PAGE 2 of 16 PAGES
--------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Partners Fund II, L.P.
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [ ]
(b) [x]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES _________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,252,500
OWNED BY _________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING _________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,252,500
--------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,252,500
--------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
--------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
1.9%
--------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
PN
--------------------------------------------------------------------------------
** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 38388F108 13G PAGE 3 of 16 PAGES
--------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Partners Institutional Fund, L.P.
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [ ]
(b) [x]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES _________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
610,000
OWNED BY _________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING _________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
610,000
--------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
610,000
--------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
--------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
0.9%
--------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
PN
--------------------------------------------------------------------------------
** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 38388F108 13G PAGE 4 of 16 PAGES
--------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Offshore Fund Ltd.
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [ ]
(b) [x]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
British Virgin Islands
--------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES _________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,820,000
OWNED BY _________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING _________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,820,000
--------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,820,000
--------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
--------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.8%
--------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
CO
--------------------------------------------------------------------------------
** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 38388F108 13G PAGE 5 of 16 PAGES
--------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Advisory Partners
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [ ]
(b) [x]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Connecticut
--------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES _________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
3,750,000
OWNED BY _________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING _________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
3,750,000
--------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
3,750,000
--------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
--------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
5.7%
--------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
PN; IA
--------------------------------------------------------------------------------
** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 38388F108 13G PAGE 6 of 16 PAGES
--------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Partners I
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [ ]
(b) [x]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Connecticut
--------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES _________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,862,500
OWNED BY _________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING _________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,862,500
--------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,862,500
--------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
--------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.8%
--------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
PN
--------------------------------------------------------------------------------
** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 38388F108 13G PAGE 7 of 16 PAGES
--------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Philip J. Hempleman
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [ ]
(b) [x]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES _________________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
3,750,000
OWNED BY _________________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING _________________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
3,750,000
--------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
3,750,000
--------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
--------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
5.7%
--------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
IN
--------------------------------------------------------------------------------
** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 38388F108 13G PAGE 8 of 16 PAGES
ITEM 1(a). NAME OF ISSUER:
The name of the issuer is W. R. Grace & Co. (the "Company").
ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
7500 Grace Drive, Columbia, Maryland 21044
ITEM 2(a). NAME OF PERSON FILING:
This statement is filed by:
(i) Ardsley Partners Fund II, L.P., a Delaware limited partnership
("AP II"), with respect to the shares of Common Stock (defined
in Item 2(d) below) directly owned by it;
(ii) Ardsley Partners Institutional Fund, L.P., a Delaware limited
partnership ("Ardsley Institutional"), with respect to the
shares of Common Stock directly owned by it;
(iii) Ardsley Offshore Fund Ltd., a British Virgin Islands Corporation
("Ardsley Offshore"), with respect to the shares of Common Stock
directly owned by it;
(iv) Ardsley Advisory Partners, a Connecticut general partnership
("Ardsley") which serves as Investment Manager of Ardsley
Offshore and the Investment Adviser of AP II, Ardsley
Institutional and certain managed accounts, with respect to the
shares of Common Stock directly owned by Ardsley Offshore, AP II,
Ardsley Institutional and the managed accounts;
(v) Ardsley Partners I, a Connecticut general partnership
("Ardsley Partners") which serves as General Partner of AP II
and Ardsley Institutional; and
(vi) Philip J. Hempleman, the Managing Partner of Ardsley and
Ardsley Partners, with respect to the shares of Common Stock
owned by AP II, Ardsley Institutional, Ardsley Offshore and
the managed accounts.
The foregoing persons are hereinafter sometimes collectively
referred to as the "Reporting Persons". Any disclosures herein with respect to
persons other than the Reporting Persons are made on information and belief
after making inquiry to the appropriate party.
ITEM 2(b). ADDRESS OF PRINCIPAL OFFICE OR, IF NONE, RESIDENCE:
The address of the business office of each of the Reporting Persons,
with the exception of Ardsley Offshore, is 262 Harbor Drive, Stamford,
Connecticut 06902.
The address of the registered office of Ardsley Offshore is Romasco
Place, Wickhams Cay 1, Roadtown Tortola, British Virgin Islands.
ITEM 2(c). CITIZENSHIP:
AP II and Ardsley Institutional are Delaware limited partnerships.
Ardsley Offshore is a British Virgin Islands Corporation. Ardsley and Ardsley
Partners are Connecticut general partnerships. Mr. Hempleman is a United States
Citizen.
CUSIP No. 38388F108 13G PAGE 9 of 16 PAGES
ITEM 2(d). TITLE OF CLASS OF SECURITIES: Common Stock, $0.01 par value
("Common Stock")
ITEM 2(e). CUSIP NUMBER: 38388F108
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13d-1(b), OR 13d-2(b),
CHECK WHETHER THE PERSON FILING IS A:
(a) [ ] Broker or dealer registered under Section 15 of the
Act
(b) [ ] Bank as defined in Section 3(a)(6) of the Act
(c) [ ] Insurance Company as defined in Section 3(a)(19) of
the Act
(d) [ ] Investment Company registered under Section 8 of the
Investment Company Act
(e) [ ] Investment Adviser registered under Section 203 of the
Investment Advisers Act of 1940
(f) [ ] Employee Benefit Plan, Pension Fund which is subject to
the provisions of the Employee Retirement Income Security
Act of 1974 or Endowment Fund; see Rule 13d-1(b)(1)(ii)(F)
(g) [ ] Parent Holding Company, in accordance with Rule 13d-
1(b)(ii)(G); see item 7
(h) ( ) Group, in accordance with Rule 13d-1(b)(1)(ii)(H)
If this statement is filed pursuant to Rule 13d-1(c), check the box. [X]
CUSIP No. 38388F108 13G PAGE 10 of 16 PAGES
ITEM 4. OWNERSHIP.
A. Ardsley Partners Fund II, L.P.
(a) Amount beneficially owned: 1,252,500
(b) Percent of class: 1.9%. The percentages used herein and in
the rest of Item 4 are calculated based upon the 65,616,330 shares of Common
Stock issued and outstanding at April 30, 2004 as reflected in the Company's
Form 10-Q/A for the quarterly period ended March 31, 2004.
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 1,252,500
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition: 1,252,500
B. Ardsley Partners Institutional Fund, L.P.
(a) Amount beneficially owned: 610,000
(b) Percent of class: 0.9%
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 610,000
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition: 610,000
C. Ardsley Offshore Fund Ltd.
(a) Amount beneficially owned: 1,820,000
(b) Percent of class: 2.8%
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 1,820,000
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition: 1,820,000
D. Ardsley Advisory Partners
(a) Amount beneficially owned: 3,750,000
(b) Percent of class: 5.7%
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 3,750,000
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition: 3,750,000
E. Ardsley Partners I
(a) Amount beneficially owned: 1,862,500
(b) Percent of class: 2.8%
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 1,862,500
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition: 1,862,500
F. Philip J. Hempleman
(a) Amount beneficially owned: 3,750,000
(b) Percent of class: 5.7%
(c) (i) Sole Power to vote or direct the vote: 3,750,000
(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or direct the disposition: 3,750,000
(iv) Shared power to dispose or direct the disposition: -0-
CUSIP No. 38388F108 13G PAGE 11 of 16 PAGES
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not applicable.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Ardsley, the Investment Manager of Ardsley Offshore and the Investment
Adviser of certain managed accounts, has the power to vote and direct the
disposition of the proceeds from the sale of the shares of Common Stock owned by
Ardsley Offshore and the managed accounts, and accordingly may be deemed the
direct "beneficial owner" of such shares of Common Stock.
Ardsley, the Investment Adviser of AP II and Ardsley Institutional shares
the power to vote and direct the disposition of the proceeds from the sale of
the shares of Common Stock owned by AP II and Ardsley Institutional, and
accordingly may be deemed the direct "beneficial owner" of such shares of Common
Stock.
Ardsley Partners, the General Partner of AP II and Ardsley Institutional
shares the power to vote and direct the disposition of the shares of Common
Stock owned by AP II and Ardsley Institutional, and accordingly may be deemed
the direct "beneficial owner" of such shares of Common Stock.
Mr. Hempleman is the Managing Partner of Ardsley and Ardsley Partners and
in that capacity directs their operations and therefore may be deemed to be the
indirect "beneficial owner" of the shares of Common Stock owned by Ardsley
Offshore, AP II, Ardsley Institutional and the managed accounts.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable.
CUSIP No. 38388F108 13G PAGE 12 of 16 PAGES
ITEM 10. CERTIFICATION.
Each of the Reporting Persons hereby makes the following certification:
By signing below I certify, to the best of my knowledge and belief,
the securities referred to above were acquired in the ordinary course of
business, were not acquired for the purpose of and do not have the effect of
changing or influencing the control of the issuer of such securities and were
not acquired in connection with or as a participant in any transaction having
such purposes or effect.
CUSIP No. 38388F108 13G PAGE 13 of 16 PAGES
SIGNATURES
After reasonable inquiry and to the best of their knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
DATED: September 2, 2004
ARDSLEY PARTNERS FUND II, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
ARDSLEY PARTNERS INSTITUTIONAL FUND, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
ARDSLEY OFFSHORE FUND LTD.
BY:
-----------------------------
Neil Glass
Vice-President and Administrative Manager
ARDSLEY ADVISORY PARTNERS
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
CUSIP No. 38388F108 13G PAGE 14 of 16 PAGES
ARDSLEY PARTNERS I
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
PHILIP J. HEMPLEMAN, Individually
BY:
-----------------------------
Philip J. Hempleman
CUSIP No. 38388F108 13G PAGE 15 of 16 PAGES
JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
The undersigned acknowledge and agree that the foregoing
statement on Schedule 13G is filed on behalf of each of the undersigned and that
all subsequent amendments to this statement on Schedule 13G shall be filed on
behalf of each of the undersigned without the necessity of filing additional
joint filing statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning him, her or it contained herein, but
shall not be responsible for the completeness and accuracy of the information
concerning the other entities or persons, except to the extent that he, she or
it knows or has reason to believe that such information is inaccurate.
DATED: September 2, 2004
ARDSLEY PARTNERS FUND II, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
ARDSLEY PARTNERS INSTITUTIONAL FUND, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
ARDSLEY OFFSHORE FUND LTD.
BY:
-----------------------------
Neil Glass
Vice-President and Administrative Manager
ARDSLEY ADVISORY PARTNERS
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
CUSIP No. 38388F108 13G PAGE 16 of 16 PAGES
ARDSLEY PARTNERS I
BY:
-----------------------------
Philip J. Hempleman
Managing Partner
PHILIP J. HEMPLEMAN, Individually
BY:
-----------------------------
Philip J. Hempleman