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[August 2007]
Imerys Acquires Astron China and The Feldspar Corporation
Imerys (Paris, France) announced on 29 August 2007 the signing of two new acquisition agreements.Firstly, Imerys has signed a final agreement with the Australian group Astron Ltd for the acquisition of all its operating Chinese subsidiaries (Astron China) for an enterprise value (debt and cash free) of Rmb 1.25 billion (€121 million).
Based in Shenyang, Astron China has four plants (the major one being located in Bayuqan, Liaoning Province) and eight distribution centres in China. With 580 employees and a strong management team, Astron China is a major player in the production, marketing, trading and sale world-wide of a large range of zircon related products, primarily zircon sand and flour, fused zirconia and zirconium chemicals. It generated for its last financial year ending 30 June 2007 total revenues (subject to audit) of Rmb 1.18 billion (€114 million), of which approximately 65% was sold into China, and an operating income of Rmb 123 million (€12 million).
Imerys said that this acquisition would allow it to enlarge its Fused Minerals activities while expanding its product range in its key refractory, ceramics and investment casting markets; substantially deepening its production presence, distribution infrastructure and sales penetration in China; and having a global production base for fused zirconia, also including the UCM facility in the USA.
Closing of the acquisition remains subject, among others, to its approval by Astron's Extraordinary General Shareholders' Meeting and to appropriate regulatory authorisations in China. It is currently expected to take place in October/November 2007.
In addition to the Astron deal, Imerys reported that it had signed a final agreement in view of its forthcoming acquisition of The Feldspar Corporation, a subsidiary of the North American group Zemex Corporation comprising its feldspar and kaolin activities. In 2006, The Feldspar Corporation achieved sales of over US$30 million (€22 million), mainly in ceramics applications. It has high quality mineral reserves, two feldspar production units in North Carolina and Georgia and a kaolin facility in Florida. This operation, which consolidates the group's positions in the North American Minerals for Ceramics market, provides a substantial potential for industrial synergy, said Imerys.
www.imerys.com
ENDS