AMCOL International (ticker: ACO, exchange: New York Stock Exchange (.N))
News Release -
AMCOL International Chairman Outlines Company Prospects After Sale Of Absorbent Polymers Business
NEW YORK, Dec. 7 /PRNewswire/ -- AMCOL International Corp. (NYSE: ACO)
will focus on positioning itself as "a world-class specialty minerals
company," upon completing the sale of its absorbent polymers business during
the first quarter of 2000, according to AMCOL Chairman and Chief Executive
Officer John Hughes.
The sale of AMCOL's Chemdal absorbent polymers unit to BASF AG, announced
Nov. 23, is subject to approval by shareholders and U.S. and European
governmental regulatory reviews.
Addressing members of the financial community during a company dinner last
night, Hughes said, "AMCOL has been a leader in the specialty minerals
business for more than 70 years. We've expanded our market presence in
minerals and environmental markets, even as our specialty chemical business in
absorbent polymers grew to be our largest business unit. AMCOL will be a
smaller company after the sale of the polymers unit, but well-positioned for
growth in terms of our resources, capital structure and market prospects."
Hughes continued, "We've been recognized as a leader in developing
minerals technology -- especially related to our base clay, bentonite -- since
the company was established in 1927. We have a high-quality global base of
mineral reserves, diversified processing capabilities throughout the world,
and a solid technology platform on which to grow. We expect to innovate
within our existing minerals and environmental markets with new and improved
products, as well as capitalizing on our investments and opportunities in
strengthening Asian economies."
Hughes noted that AMCOL expects to be profitable and to report sales of
approximately $300 million in 2000. On matters of capitalization, Hughes said
that AMCOL expects to carry approximately $40 to $60 million in debt after the
sale of the absorbent polymers unit. AMCOL expects capital expenditures to be
at a rate of approximately $25 million in 2000 on the company's minerals,
environmental and developing nanocomposites business, compared to a 1999
estimated rate of $22 million.
AMCOL announced the agreement to sell its Chemdal absorbent polymers
business on Nov. 23, 1999. AMCOL is selling the business to German chemical
company BASF AG in a cash transaction, subject to approval by AMCOL
shareholders, as well as certain U.S. and European governmental regulatory
reviews. The cash to be paid to AMCOL for the Chemdal absorbent polymers
business is approximately $656.5 million, and is subject to certain purchase
price adjustments, including those based on the absorbent polymers business'
outstanding debt and working capital at closing.
This release contains certain forward-looking statements regarding the
AMCOL's expected performance for future periods and actual results for such
periods might materially differ. Such forward-looking statements are subject
to uncertainties, which include, but are not limited to, actual growth in
AMCOL's various markets, utilization of AMCOL's plants, currency exchange
rates, currency devaluations, delays in development, production and marketing
of new products, integration of acquired businesses, and other factors
detailed from time to time in AMCOL's annual report and other reports filed
with the Securities and Exchange Commission.
AMCOL International, headquartered in Arlington Heights, Ill., is a
specialty chemicals and minerals company that produces and markets primarily
liquid-absorbing products for a wide range of industrial and consumer-related
markets. AMCOL's common stock is traded on the New York Stock Exchange under
the symbol ACO. AMCOL's web address is www.amcol.com .
SOURCE AMCOL International, Inc.
Web site: http: //www.amcol.com
Company News On-Call: http: //www.prnewswire.com/comp/109852.html or fax, 800-758-5804, ext. 109852
CONTACT: Jodi Warner, Director, Investor Relations of AMCOL International, Inc. 847-394-8730, ext. 6171