IMC Global Announces Plans to Explore Strategic Options for its IMC AgriBusiness Distribution Unit
NORTHBROOK, Ill., June 10 /PRNewswire/ -- IMC (Internet Mail Consortium, Santa Cruz, CA, www.imc.org) An industry trade association founded in 1996 by Paul Hoffman and Dave Crocker that promotes Internet e-mail standards and features. Global (NYSE NYSE
See: New York Stock Exchange : IGL IGL - Interactive Graphic Language. Used primarily by Physics Dept at Brooklyn Poly, uses numerical methods on vectors to approximate continuous function problems that don't have closed form solutions. ) today announced plans to explore strategic options, including divestiture, for its IMC AgriBusiness retail and wholesale distribution unit.
"Our decision to explore the possible divestiture of IMC AgriBusiness follows a comprehensive portfolio study to further clarify our core businesses, identify assets for possible monetization, and pursue ways to more efficiently deploy our resources to improve returns," said Robert E. Fowler, Jr., president and chief executive officer of IMC Global.
IMC Global said it has retained the investment banking firm of J.P. Morgan & Co. as advisors in the process.
"We are in the early stages of this effort, and, therefore, we cannot be more specific on timing or expected proceeds at this time," Fowler noted. "A critical step in this process is to maintain the strategic value of IMC AgriBusiness by securing long-term supply agreements for our phosphate and potash products."
Headquartered in Collinsville, Illinois, IMC AgriBusiness has approximately 2,000 employees and more than 240 locations in the Midwest and Southeast. The business unit sells crop nutrients, seed and crop protection products to farmers in these geographic regions, with an emphasis on the agriculturally rich Eastern Corn Belt. IMC AgriBusiness also applies crop nutrients and crop protection products and provides year-round crop advisory services, including soil testing, field mapping, crop consulting and comprehensive precision agriculture consulting. Its IMC Nitrogen facility in East Dubuque, Illinois East Dubuque is a city in Jo Daviess County, Illinois, United States. The population was 1,995 at the 2000 census. East Dubuque is located alongside the Mississippi River. Across the river is the city of Dubuque, Iowa. manufactures approximately 500,000 tons of nitrogen products annually in the form of anhydrous ammonia, nitrogen solutions and urea. In addition, through its IMC Rainbow(R) division homogeneous N-P-K products and other materials are sold to nearly 900 dealers in the Southeastern and Florida markets.
IMC AgriBusiness had net sales and gross margins of $873 million and $164 million, respectively, in 1997. Total assets were $487 million for the year.
IMC Global is one of the world's leading producers and suppliers of agricultural products, salt and industrial chemicals. With 1997 revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of nearly $3 billion and $530 million, respectively, the Company is among the world's largest producers and marketers of phosphate and potash crop nutrients and animal feed ingredients. It also is the world's third-largest producer of both salt and soda chemicals, and produces sodium bicarbonate, boron chemicals and magnesium chloride.
SOURCE IMC Global
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