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[February 2002]
Zemex Acquires Attapulgite Facility
Zemex Corporation announced on 4 February 2002 that it had purchased the attapulgite clay assets of Milwhite Inc for US$12 million. Milwhite's clay products find application in markets that Zemex currently serves, such as the formation of joint cement compounds for the construction industry, products for the oil well drilling industry, the absorbent industries and the coatings markets.The purchase price will be funded by the corporation's existing credit facility. The acquisition is expected to generate approximately $2.5 million of EBITDA in the first full year, or around 30 cents per share and 12 cents per share of net incremental income.
Richard Lister, President and CEO of Zemex said: "We are very excited about this opportunity as it serves the same markets that we currently serve but with an entirely new product line. The existing sales and administrative staff of our industrial minerals group will absorb this acquisition with only minimal increases. As a result, the immediate synergies that will be realized make it very advantageous to Zemex and the acquisition is accretive immediately".
Zemex is a diversified producer of industrial minerals and speciality products and currently operates facilities across the USA and Canada. Its products are used in a variety of commercial applications and are sold throughout the USA, Canada and Europe.
ENDS