Minerals Technologies raises offer to $42.50 per share for Amcol
25 Feb 2014
Minerals Technologies Inc (MTI), previously Pfizer subsidiary, yesterday raised its cash offer to buy minerals and materials group Amcol International Corp to about $1.38 billion.
MTI has raised its offer from $42 per share to $42.50 per share, a 7 per cent discount to Amcol's Monday closing price.
MTI's offer totals $1.59 billion, including the assumption of Amcol's $201 million debt.
New York-based MTI said that it raised its bid after conducting due diligence, and its offer was superior to the $41-per share offer announced early this month by Paris-based Imerys SA for Amcol.
Earlier this month, MTI tabled a $42-a-share bid for Amcol, topping an already agreed deal with Imerys, which last week declined to raise its offer.
"Our two companies are a strong strategic fit, operating in similar geographies and producing differentiated product and process technologies," said Joseph Muscari, executive chairman of MTI.''
"The combined company would bring together MTI's number one global position in precipitated calcium carbonate with Amcol's worldwide leadership in bentonite to create a leading industrial minerals company with more than $2 billion in sales," he added.
With revenue over $1 billion in 2013, Illinois-based Amcol is a global specialty minerals and materials company operating in 26 countries with a strong presence in the US.
The company has a global leadership position in bentonite, a mineral with a unique scope of properties applicable to a diverse set of growing commercial applications ranging from metalcasting to construction and drilling, as well as a number of consumer products.
Amcol also serves the expanding oil and gas market through its Energy Services business.
MTI said that the transaction combines its global leadership in precipitated calcium carbonate with Amcol's global leadership in bentonite, creating a stronger US-based global minerals supplier.
MTI is a resource- and technology-based company that develops and produces performance-enhancing minerals, mineral-based and synthetic mineral products for the paper, steel, polymer and other manufacturing industries on a worldwide basis.
The company recorded sales of $1.02 billion in 2013.
