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AMCOL International specializes in products for green sand molding operations.

AMCOL International Agrees to Takeover

Feb. 17, 2014
Agreement, $1.6 billion + debt Counter offer, $1.36 billion

AMCOL International Corporation has agreed to one takeover offer, leading to a second, unsolicited bid for the company.  The agreement, with Imerys S.A., a French industrial minerals and materials group, foresees an enlarged organization that the buyer expects will strengthen its U.S. business with "significant commercial and operational synergies."

Imerys’ $41/share bid is estimated at $1.6 billion (including debt), and has been approved by the boards of both companies.

"AMCOL's core businesses will benefit significantly from Imerys' global presence and strong financial position,” offered CEO Ryan McKendrick. “This transaction will combine two complementary companies dedicated to innovation and operational excellence creating exciting opportunities for AMCOL employees while enhancing offerings for customers."

AMCOL, the onetime American Colloid Co., is one of largest suppliers green sand molding materials for the metalcasting, in particular bentonite, specialty chromite sands, and resins. It also offers technical support to foundries, including troubleshooting and customized packages of products, formulations, research, and testing.

Imerys specializes in minerals for heat resistance, mechanical strength, conductivity, coverage, barrier effect, and other industrial processes.

Imerys said it would commence offering cash for 100% of AMCOL's outstanding shares this month, and intends to close the transaction by midyear. It said it would set up a wholly owned subsidiary to merge with AMCOL, with AMCOL continuing as the surviving entity.

"This transaction will ... (allow) our enlarged group to become a better leader of mineral-based specialty solutions for industry, to strengthen its presence in the U.S., to be more innovative and to enhance its growth profile," stated Imerys CEO Gilles Michel.

The Imerys proposal was followed by Minerals Technologies Inc. offering $42/share, which is estimated at $1.36 billion.

Minerals Technologies Inc. has two business units: specialty minerals (precipitated calcium carbonate, quicklime, limestone, talc) and refractories (Minteq lining systems.)  

"Our proposal is clearly superior to the existing deal for AMCOL, and we look forward to working with AMCOL to consummate this superior transaction as soon as is practicable," stated Minerals Technologies CEO Joseph Muscari.