CHEMTRADE ANNOUNCES CLOSING OF ACQUISITION OF MARSULEX

TORONTO, June 24, 2011 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) ("Chemtrade") announced today that it has completed its previously-announced acquisition of all of the businesses of Marsulex Inc. (other than Marsulex Environmental Technologies Corporation) for an aggregate transaction value of $419.5 million. The acquisition was funded by senior secured credit facilities and the proceeds of an offering of Subscription Receipts that was completed on May 26, 2011 and raised gross proceeds of $149.5 million.  The Subscription Receipts were exchanged on a one-for-one basis for units of Chemtrade without payment of additional consideration or further action, with the result that an aggregate of 10.99 million units have now been issued at an issue price of $13.60 per unit.

Mark Davis, President & CEO of Chemtrade, said, "We are delighted to have completed the acquisition of Marsulex. The Marsulex products and services build on our core competences and strengthen and complement our existing portfolio. Further, the majority of Marsulex earnings are generated by risk shared or fee based agreements consistent with Chemtrade's business model. Chemtrade's enhanced size, scale and quality of earnings strengthens our ability to grow and continually improve the quality of our businesses. Planning for the integration has been underway since our announcement in early May and we expect a smooth transition as we bring our operations together. In the near term, we expect to sell certain non-core assets but do not expect such sales to be material."

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is also a leading regional supplier of sulphur, sodium chlorate, phosphorus pentasulphide, zinc oxide, and water treatment chemicals.

This news release contains certain statements which may constitute "forward-looking" statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario). The use of any of the words "anticipate", "continue", estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this news release describe the expectations of Chemtrade as of the date of this news release. Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, we cannot guarantee that any forward-looking statement will materialize. Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business. We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of Chemtrade, including, but not limited to:

  • Chemtrade's ability to integrate the new business smoothly;
  • Chemtrade's expectations regarding the sale of certain  non-core assets in the near term and the materiality of any such sale; and
  • the ability of the enhanced size, scale and quality of earnings to strengthen Chemtrade's ability to grow and continually improve the quality of our businesses.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.

SOURCE Chemtrade Logistics Income Fund

For further information:

Mark Davis      Rohit Bhardwaj
President and CEO     Vice President Finance & CFO
Tel: (416) 496-4176     Tel: (416) 496-4177

 


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