Industry News

Phelps Dodge to Sell Columbian Chemicals Co. Subsidiary

Published on 2005-11-17. Author : SpecialChem

PHOENIX -- Phelps Dodge Corp. (NYSE: PD - News) announced it has agreed to sell its Columbian Chemicals Co. subsidiary, a leading manufacturer of rubber and industrial carbon-black products, to a company owned jointly by One Equity Partners, a private equity affiliate of JPMorgan Chase & Co., and South Korean-based DC Chemical Co. Ltd. The transaction is subject to customary closing conditions, including regulatory approvals.

Under the terms of the agreement, Phelps Dodge expects to receive cash proceeds of approximately $600 million, including approximately $115 million of Columbian's foreign-held cash to be distributed to Phelps Dodge. The transaction is expected to result in an approximate $60 million special, net after-tax loss.

Based in Marietta, Ga., Columbian Chemicals Co. is one of the world's leading producers of carbon black -- an engineered material that improves the strength, durability and overall performance of a range of products, including tires and other mechanical rubber goods, inks, paints, plastics and coatings. Columbian owns and operates 12 carbon-black manufacturing facilities in Brazil, Canada, England, Germany, Hungary, Italy, Korea, Spain and the United States.

Phelps Dodge Corp. is one of the world's leading producers of copper and molybdenum, the largest producer of molybdenum-based chemicals and continuous-cast copper rod, and among the leading producers of wire and cable and carbon black. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ approximately 15,500 people worldwide.

This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In addition to the risks and uncertainties noted in this news release, there are certain factors that could cause results to differ materially from those anticipated by some of the statements made. These factors include those listed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the company's most recently filed annual report on Form 10-K for the fiscal year ended December 31, 2004.

Source: Phelps Dodge Corp.

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