* Imerys has said will not raise offer
* Minerals sees combined company annual sales of $2 bln
* Sees deal immediately adding to earnings
* Sees deal closing in first half of 2014
* Amcol shares down 2 pct, Minerals shares up 5 pct
March 10 Minerals Technologies Inc said on
Monday it would buy Amcol International Corp, which produces a
type of clay used in everything from cosmetics to oil drilling,
for about $1.7 billion as Imerys SA bowed out of a month-long
After repeated offers and counter offers, Imerys
said on Friday it would not raise it offer for Amcol to
top Minerals' offer of $45.75 per share for the world's
biggest producer of bentonite, also used in kitty litter.
Minerals stock was up 5.2 percent at $57.25, while Amcol
shares were down 2 percent at $45.70 in afternoon trading on the
New York Stock Exchange.
Even though Imerys has bowed out of the race for Amcol, it
still has the chance to reenter. Amcol said on Friday that
Imerys had four working days to match Minerals' bid.
Paris-based Imerys first offered to buy Hoffman Estates,
Illinois-based Amcol on Feb. 11 for $41 per share, or about $1.6
billion, to help boost its presence in the United States.
New York-based Minerals stepped in with a raised offer three
days later in a deal aimed at helping it diversify from
producing calcium carbonate - a mineral used to whiten
everything from paper to talc.
Since Imerys' first offer, Amcol shares have climbed about
27 percent through Friday and have traded at life-high levels.
The stock trades at 20.7 times their earnings potential, a
slight discount to the sector average of 21.3.
Minerals said on Monday buying Amcol would help double its
annual sales to $2 billion. It said Amcol would immediately add
to earnings once the deal closes, which is expected in the first
half of this year.
Amcol will also offer Minerals some protection against
swings in commodity prices and the company expects it will
generate savings of at least $50 million in the near term.
Minerals said Amcol ended its merger agreement with Imerys
and paid the company's U.S. subsidiary a termination fee of $39
JP Morgan has committed to provide funding for the deal, the
Cravath, Swaine & Moore LLP is legal counsel to Minerals and
Lazard is the lead financial adviser. Kirkland & Ellis LLP is
Amcol's legal counsel and Goldman, Sachs & Co is its exclusive