IMC Global Announces Plans to Explore Strategic Options for its IMC AgriBusiness 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 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 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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CO: IMC Global ST: Illinois IN: AGR CHM SU:
JC-CB -- CGW028 -- 2851 06/10/98 11:47 EDT http://www.prnewswire.com