LONDON - Minerals Technologies said on Monday that it had won a bidding war for Amcol International, agreeing to pay about $1.7 billion.
The company, based in New York, beat out the French industrial materials company Imerys after a spirited back-and-forth for Amcol, a producer of specialty minerals and materials based in Illinois.
Imerys originally agreed to pay $41 a share for Amcol on Feb. 11, and it subsequently raised its offer twice after Amcol received unsolicited, competing bids from Minerals Technologies.
Imerys declined to raise its offer a third time on Friday after Minerals Technologies offered to pay $45.75 a share in cash.
On Monday, Minerals Technologies and Amcol announced that they had reached a definitive merger agreement, with Amcol paying a $39 million termination fee to Imerys.
“The combination of MTI and Amcol will create a minerals platform that is well-positioned for growth through geographic expansion and new product innovation,†said Joseph C. Muscari, chairman and chief executive of Minerals Technologies.
The transaction, which was unanimously approved by the boards of directors of Minerals Technologies and Amcol, is expected to close in the first half of 2014.
The deal is intended to create a “more robust U.S.-based international minerals supplier†with a broader product focus, the companies said. The combined company is expected to have more than $2 billion in annual revenue.
Amcol is a leading producer of bentonite, which is used in machine tooling, construction and drilling. Minerals Technologies manufactures precipitated calcium carbonate, which is used in the paper industry and which accounted for about half of its revenue last year.
“This transaction demonstrates the Amcol board’s commitment to maximizing value for our shareholders,†said Ryan F. McKendrick, Amcol’s chief executive. “We look forward to working with Minerals Technologies to ensure a smooth transition and complete the transaction as expeditiously as possible.â€
Minerals Technologies plans to finance the deal using cash and debt financing.
Amcol, with a presence in 26 countries, posted revenue of more than $1 billion in 2013.
Minerals Technologies, which was spun off by Pfizer in 1992, had revenue of $1.02 billion last year.
Lazard and JPMorgan Chase served as financial advisers to Minerals Technologies, while Goldman Sachs was the financial adviser to Amcol. The legal advisers were Cravath, Swaine & Moore for Minerals Technologies and Kirkland & Ellis for Amcol.
