LONDON - The French specialty materials maker Imerys said Wednesday that it has signed an agreement to acquire Amcol International for $1.6 billion in cash and the assumption of debt.
The offer of $41 a share in cash represents a 19 percent premium over the volume weighted average closing price of Amcol over the past 30 trading days.
The deal is expected to complement Imerys existing business of providing minerals and specialty materials, such as ceramics, to industry and expand its offerings to the oil and gas market. Amcol is a leading producer of bentonite, which is used in machine tooling, construction and drilling.
The transaction is subject to regulatory approval and is expected to close in the first half of 2014. The deal has been unanimously approved by the boards of directors of both companies.
“We are very excited with the many business and development opportunities that we believe we can create by combining our two companies, and we are looking forward to welcoming the 3,000 employees of Amcol,†said Gilles Michel, the chairman and chief executive of Imerys. “I am convinced that this merger, which meets our financial criteria, will create value for our shareholders.â€
Imerys plans to fund the transaction with debt.
Amcol, based in Illinois, is a producer of specialty minerals and materials and has a presence in 26 countries. The company posted revenue of more than $1 billion last year.
Imerys employs about 16,000 people in 50 countries and had revenue of 3.9 billion euros, or about $5.32 billion, in 2012.
