SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
January 3, 1997
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(Date of Report, date of earliest event reported)
VALHI, INC.
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(Exact name of Registrant as specified in its charter)
Delaware 1-5467 87-0110150
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State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
5430 LBJ Freeway, Suite 1700, Dallas, TX 75240-2697
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(Address of principal executive offices) (Zip Code)
(972) 233-1700
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(Registrant's telephone number, including area code)
(Former name or address, if changed since last report)
Item 5: Other Events
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On January 3, 1997, the Registrant issued the press
release attached hereto as Exhibit 99.1 which is incorporated
herein by reference.
Item 7: Financial Statements, Pro Forma Financial Information
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and Exhibits
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(c) Exhibit
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Item No. Exhibit Index
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99.1 Press release dated January 3, 1997
issued by the Registrant
SIGNATURES
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Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
VALHI, INC.
(Registrant)
By: /s/ Steven L. Watson
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Steven L. Watson
Vice President & Secretary
Date: January 3, 1997
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[LOGO]
FOR IMMEDIATE RELEASE: CONTACT:
VALHI, INC. Steven L. Watson,
Vice President
Three Lincoln Centre (972) 450-4216
5430 LBJ Freeway (972) 450-4278 (fax)
Dallas, Texas 75240-2697
VALHI ANNOUNCES TRANSFER OF SUGAR BUSINESS
Dallas, Texas . . . January 3, 1997 . . . Valhi, Inc.
(NYSE: VHI) announced today the completion of the transfer of
control to Snake River Sugar Company, an Oregon cooperative, of
the refined sugar business previously conducted by The
Amalgamated Sugar Company, an indirect wholly owned subsidiary of
Valhi.
Pursuant to the transaction, Amalgamated received an
interest in The Amalgamated Sugar Company LLC, a limited
liability company controlled by Snake River, with an agreed value
of $250 million, in return for the transfer of substantially all
of Amalgamated's net assets, on a tax deferred basis. Snake
River made certain loans to Valhi aggregating $250 million, which
are collateralized with Amalgamated's interest in the LLC and are
due in 30 years. Snake River's source of funds for these loans
included capital contributions by the grower members of Snake
River and $192 million in debt financing provided by Valhi, a
portion of which Snake River expects to repay or refinance with
third party lenders in 1997. Valhi received approximately $82
million net cash, including fourth quarter dividends from
Amalgamated of $21 million.
Depending upon future performance, Amalgamated is
entitled to receive certain distributions from the LLC, which are
expected to exceed Valhi's interest payments on the $250 million
of loans from Snake River.
Valhi is engaged in the chemicals, fast food, component
products, waste management and other industries.
The statements in this release relating to matters that
are not historical facts are forward looking statements that
involve risks and uncertainties, including, but not limited to,
the risks inherent in agricultural operations (including the
choice of crops to be grown by producers of agricultural
products), future global supply, demand and pricing for refined
sugar, continuation of the United States government's price
support program for sugar refined from sugarbeets, the ability of
Snake River's management to effect an efficient transition of
Amalgamated's operations to the LLC, environmental matters,
general economic conditions, and other risks and uncertainties
affecting the business of Amalgamated detailed from time to time
in Valhi's filings with the Securities and Exchange Commission.
