8 July 1999: FMC Corp., the US-based producer of chemicals and machinery for industry and agriculture, said it has completed its acquisition of Tg Soda Ash Inc. from Elf Atochem North America, Inc. fo…
8 July 1999: FMC Corp., the US-based producer of chemicals and machinery for industry and agriculture, said it has completed its acquisition of Tg Soda Ash Inc. from Elf Atochem North America, Inc. for about US$ 50 million in cash and a contingent payment due at year-end 2003. The contingent payment is based on financial performance of the combined soda ash operations between 2001 and 2003. FMC said the contingent payment cannot currently be determined, but could be as much as US$ 100 million, depending on profitability. The assets included in the transaction are a Tg processing facility, with an annual capacity of 1.3 million tons, and a mine and certain trona ore land leases. Total annual capacity of the combined operations will be 4.85 million tons. “We expect substantial cost savings and increased competitiveness – particularly in international markets – from the synergies of our combined operations,” said FMC chairman and chief executive officer Robert Burt. According to FMC, the synergies of the transaction are based mainly on the proximity of the two operations. FMC said it plans to continue to operate the Tg processing plant and ultimately will improve the competitive position of the plant by supplying trona ore from the FMC mine. FMC“s combined operations will employ about 1,300 people in the Green River, Wyoming area.