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Orica will sell its chemicals business to funds advised by investment company Blackstone.
Orica will sell its chemicals business to funds advised by investment company Blackstone.
 









Orica sells chemicals division

As part of the planned separation of its business, an explosive supplier has entered into an agreement to sell its chemicals division to an investment company.

As previously reported by Quarry, Orica announced in August that it would be separating its mining and chemicals businesses either by demerger or divestment in order to allow it to focus on its core mining services market.

At the time, Orica indicated that a demerger was the preferred option but the company has now opted to sell its chemicals business to funds advised by investment company Blackstone.

“The certainty as to value and outcome of this transaction is a good result for Orica shareholders,” Orica managing director and CEO Ian Smith explained.

The $750 million sale includes Orica’s chemicals trading businesses in Australia, New Zealand and Latin America, the Australian chloralkali manufacturing business, and Bronson & Jacobs, which is a supplier to the food and nutrition, and health and personal care industries in Australia, New Zealand and Asia.

James Carnegie, senior managing director and head of private equity for Australia at Blackstone, commented, “Orica is a world-class company and we are excited about investing in its market-leading chemicals business. Orica Chemicals is strongly positioned and we look forward to continuing its best-in-class standards of safety and service.”

An Orica spokesperson previously confirmed to Quarry that the explosives sector would remain with the company, and that its service, availability and security of supply to the Australian quarrying industry would not be affected by the agreement.

The transaction is subject to the approval of the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office. It is expected to close in the first quarter of 2015.

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Explosives supplier to separate businesses










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Thursday, 17 October, 2019 4:57am
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