OM Group sold its downstream operations, including cobalt refinery assets in Kokkola, Finland, to a joint venture including Freeport-McMoRan Copper & Gold Inc. for up to $435 million.
The sale is expected to close by April 2013; other venture members are Lundin Mining and La Generale des Carrieres et des Mines (Gecamines). An initial cash consideration of $325 million and future payments of up to $110 million are expected given revenue targets over three years.
“The divestiture is the final step in exiting our legacy commodity businesses to move into technology-based businesses with attractive growth prospects,” said CEO Joe Scaminace. “The company will be well-positioned to achieve core strategic objectives with a strong balance sheet.”
The move will expand the technology-based industrial growth company’s positions into current electronic, automotive, aerospace, industrial and renewable energy markets. Within the transaction, OM will transfer its assets in, GTL, a joint venture based in the Democratic Republic of Congo to the joint venture partners.