OM Group sell advanced materials business $435 million

OM Group to sell advanced materials business for $435 million

10:04 AM, 23rd January 2013
OM Group to sell advanced materials business for $435 million
Joe Scaminace, Chairman and CEO, OM Group.

CLEVELAND, US: OM Group Inc announced a major step in its strategic evolution with the signing of definitive agreements to exit its advanced materials business. The transactions include the sale of the downstream portion of the business, including its cobalt refinery assets in Kokkola, Finland, to a joint venture to be held by Freeport-McMoRan Copper & Gold Inc, Lundin Mining Corporation and La Generale des Carrieres et des Mines (Gecamines), for total potential consideration of up to $435 million.

The $435 million comprises of initial cash consideration of $325 million and potential future payments of up to an additional $110 million based on the business achieving certain revenue targets over a period of three years. The sale is expected to close before the end of April 2013, subject to customary closing conditions and regulatory approvals. OM Group also announced that its Board of Directors has authorized the repurchase of up to $50 million of its common shares.

“The divestiture of our cobalt business is the final step in exiting our legacy commodity businesses and is consistent with our strategy to move up the value chain into technology-based businesses with attractive growth prospects and more predictable earnings profiles. Following the sale, the Company will be well-positioned to achieve its core strategic objectives with a strong balance sheet and a clear vision for the future.  We plan to return capital to shareholders via our recently authorized share repurchase programme, and we will continue to invest in our businesses to support our growth strategy,” said Joe Scaminace, Chairman and CEO, OM Group.

© WOC News

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