OM Group announces to sell precious metals business to Umicore
Furthermore OM intends to sell its PVC heat stabilizer product line to reduce debts
04-Jun-2003
OM Group, Inc.announced today that it has entered into a definitive agreement to sell its precious metals business to Umicore for 643 million (approximately $752 million) in cash. The transaction is expected to result in net proceeds of approximately $700 million. Plans call for OMG to use the net proceeds to reduce debt.
The sale includes OMGs automotive catalysts, fuel cells, metals/order_t/'>precious metals chemistry, technical materials, jewelry and electroplating businesses, as well as its metals management business. For the year ended December 31, 2002, the combined sales of these businesses totaled $4.4 billion, with operating profit of $78 million.
The Company currently anticipates that the proposed sale, which is subject to customary U.S. and European regulatory approvals, is expected to close sometime in the third quarter of 2003. During the period prior to closing, OMG will remain committed to meeting the needs of its associates and customers impacted by the sale.
"Completing the sale of the Precious Metals business will be a major milestone in the strategic plan announced to investors in December 2002" said James P. Mooney, chairman and chief executive officer of OM Group." It will strengthen our balance sheet and allow the Company to focus on continuing to increase the profitability of our Base Metals businesses."
Mooney added," The transaction should greatly benefit all of the involved parties. It will enhance our ability to deliver shareholder value, while Umicore will gain a widely recognized technical and market leader with a dedicated work force."
Thomas R. Miklich, OMGs chief financial officer, said the proposed transaction will allow the Company to meet the terms and conditions of its amended Revolving Credit Facility and Term Loan Agreement with respect to asset sales long before the December 31, 2003, deadline.
Furthermore OM Group, Inc. announced today that it has signed a letter of intent to sell its PVC Heat Stabilizer product line for approximately $10 million in cash.
OMG plans for this transaction to be completed on or before June 30, 2003, and will use the net proceeds to further reduce debt.
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