Minerals Technologies Wins Battle for AMCOL

Minerals Technologies Inc (MTI) of New York, NY has signed a definitive merger agreement under which MTI will acquire AMCOL for US$45.75/share for a total transaction value of US$1.7 billion. The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close next month. Prior to entering into this agreement, AMCOL terminated its merger agreement with Imerys SA of France. In accordance with that agreement, AMCOL has paid Imerys’ U.S. subsidiary a termination fee of US$39 million. Joseph C Muscari, MTI’s CEO, said, “The combination of MTI and AMCOL will create a minerals platform that is well-positioned for growth through geographic expansion and new product innovation. We will be a leading industrial mineral company with more than US$2 billion in sales, strong market positions, and a dedicated team focused on customer needs. Together, we will be better positioned to take advantage of even more opportunities for innovation and growth in the global minerals industry.” MTI says that its priorities are to integrate AMCOL as quickly as possible and to pay down its debt level. The purchase was made with US$394 million in cash and US$1.56 billion in new debt financing. Two areas of the combined company, however, will be examined immediately: the future of AMCOL’s chromite mine and plant in South Africa and MTI’s refractories business in China. MTI expects the combined company to open up new growth opportunities in adhesives & sealants, functional fillers & extenders, consumer products, animal feed, pet waste absorbents and agricultural products. Growth is also expected from the existing businesses, including the customization and globalization of MTI’s performance minerals business (specialty precipitated calcium carbonate, ground calcium carbonate, talc) and from AMCOL’s investment in Novinda. Novinda’s Amended Silicates are new mercury sorbents recently introduced for coal-fired power plants.

Volume 28 issue 6

Leave a Reply