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[September 2007]
Signature of Two New Aquisition Agreements
Imerys announces today it has signed a final agreement with the Australian group Astron Limited ("Astron") 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 4 plants (the major one being located in Bayuqan, Liaoning Province) and 8 distribution centers 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 30th June 2007 total revenues of Rmb 1.18 billion(1) (€114 million), of which approximately 65% was sold into China, and an operating income of Rmb 123 million(1) (€12 million).
This acquisition would allow Imerys 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;
• having a global production base for fused zirconia, also including UCM facility in the US.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.
The Feldspar Corporation
Furthermore, the Group has 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 $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 on the North American Minerals for Ceramics market, provides a substantial potential for industrial synergy.
ENDS