29 December 1997: The US chemicals operation IMC Global Inc. said earlier this month that it had agreed to purchase privately-owned salt and soda ash producer Harris Chemical Group for US$ 450 million…
29 December 1997: The US chemicals operation IMC Global Inc. said earlier this month that it had agreed to purchase privately-owned salt and soda ash producer Harris Chemical Group for US$ 450 million in cash and the assumption of approximately US$ 950 million of debt. Harris is the third largest salt producer worldwide, with operations in North America, Europe and Australia. IMC also said it agreed to acquire Harris Chemical“s Australian affiliate, Penrice Soda Products Pty. Ltd. In 1996, IMC“s revenues totalled nearly US$ 3 billion. IMC said it expects Harris Chemical and Penrice to generate annual cash flow of US$ 210-215 million in its first full year of operation. IMC said the acquisitions, which are expected to be completed in early 1998, will bolster earnings by late 1998 and will add about 30 cents to 35 cents a share in 1999. “The view of the management of IMC Global is this opportunity to acquire Harris Chemical is far better long-term and will bring greater value to our shareholders than a stock repurchase would,” an IMC spokesman said. The spokesman said IMC was not the only company seeking to acquire Harris Chemical, but gave no details on rival bidders. IMC Global President Robert Fowler Jr. said cost-reduction initiatives related to the acquisition are expected to save approximately US$ 50 million a year by the year 2000. He added that the acquisition was consistent with IMC Global“s growth objectives and builds on its core businesses in mining, chemical processing, and international distribution logistics and marketing.