Looking to buy a business?
The world’s largest trona mine is now for sale.
News of FMC Corporation’s $1.8 billion purchase of Cheminova, a Danish crop production company, was also bundled with an announcement that the company plans to sell its mine west of Green River.
In a public announcement Monday, the company announced it would use funds generated from the sale of its FMC Alkali Minerals division to reduce the debt it will incur from the Cheminova purchase. FMC announced plans to split the company into two entities last March by creating FMC Minerals, which included its trona facility.
FMC Minerals holds both the alkali operations and its lithium division, which is not affected by the sale.
The separation, according to a company release issued at the time, was expected to be completed in 2015.
“FMC is committed to its strong balance sheet and a sale of Alkali Chemicals will allow us to de-lever to a point that is appropriate for our business profile,” FMC Corporation’s President, CEO and Chairman Pierre Brondeau said in the company’s acquisition announcement. “Alkali Chemicals is a well-run, highly profitable and cash generative business, and we are confident it will attract many interested buyers. We expect to complete this sale by mid-2015.”
According to the company’s second quarter results, FMC Minerals’ revenue increased 2 percent from last year’s quarter-two results, however also noted the revenue from Alkali Chemicals was flat from the prior year.
The company claimed higher pricing was offset by “lower sales volume, driven by shipment timing and lower freight costs due to a different geographic sales mix.”
The report also noted that soda ash pricing increased during the second quarter, with the company speculating full-year earnings will be higher than 2013, driven by soda ash volume increases and better pricing along with the company’s improved lithium operations.
The mine encompasses more than 3,500 miles of tunnels 1,500 feet underground.
Calls to FMC were not returned as of press time.
Reader Comments(0)