TORONTO, April 30 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN)
announced today that it is purchasing the liquid sodium hydrosulphite (SHS)
business of Olin Corporation for U.S. $7.3 million, a portion of which is
subject to certain earn out provisions. The acquisition does not include
Olin's manufacturing assets. Under the agreement, Olin will produce product
for Chemtrade at its plants in Charleston, Tennessee and Augusta, Georgia. The
transaction is expected to close at the beginning of May.
Mark Davis, Chief Executive Officer of Chemtrade, said the deal enhances
Chemtrade's ability to reliably supply its customers and further strengthens
Chemtrade's SHS business. "We now have a significantly larger customer base,
with the flexibility of supplying our customers from our own plant in Leeds,
South Carolina or from the Olin plants." Mr. Davis said the new contracts are
expected to generate an EBITDA to capital return in excess of 20%.
Mr. Davis added, "The new relationship is similar to and complements the
supply and marketing arrangement we have with ZhongCheng for powder SHS in the
U.S. The combination of our own production with outsourced supply and
production enables us to profitably serve our customer base while limiting our
exposure to manufacturing risks."
Chemtrade operates a diversified business providing industrial chemicals
and services to customers in North America and around the world. Chemtrade is
one of the world'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, phosphorous
pentasulphide, and zinc oxide.
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", "may",
"will", "project", "should", "believe" and similar expressions are intended to
identify forward-looking statements.
- This news release contains forward-looking statements about the
objectives, strategies, financial condition, results of operations
and businesses of the Fund. These statements are "forward-looking" as
they are based on current expectations about our business and the
markets we operate in, and on various estimates and assumptions.
- Forward-looking statements in this news release describe our
expectations 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.
- Risks that could cause our actual results to differ materially from
our current expectations are discussed in the RISKS AND UNCERTAINTIES
section of our MD&A.
- 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.
For further information:
For further information: Mark Davis, Chief Executive Officer, Tel: (416)
496-4176; Rohit Bhardwaj, Vice-President, Finance and CFO, Tel: (416)