<PAGE>
- -----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 28, 1998
IMC GLOBAL INC.
(Exact name of Registrant as specified in its charter)
Commission File Number: 1-9759
Delaware 36-3492467
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2100 Sanders Road 60062
Northbrook, Illinois (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (847) 272-9200
- ----------------------------------------------------------------------
<PAGE>
Item 5. Other Events
The following is the text of a press release relating to the
disposition of the IMC Chemicals soda ash and boron chemicals
businesses.
IMC GLOBAL REACHES DEFINITIVE AGREEMENT TO SELL ITS SODA ASH
AND BORON CHEMICALS BUSINESSES IN TRANSACTION VALUED AT ABOUT
$520 MILLION.
NORTHBROOK, IL., December 28, 1998 -- IMC Global (NYSE: IGL)
announced today that it has signed a definitive agreement to
sell its IMC Chemicals soda ash and boron chemicals businesses
to Mincorp LLC in a transaction valued at approximately $520
million.
Under terms of the agreement, IMC's initial consideration will
consist of approximately $400 million of cash and assumed
debt, an ongoing minority economic interest in the resulting
new company, and the funding by the new company of the
purchase of a European soda products facility. The
transaction will result in an estimated non-cash, after-tax
loss of about $30 million, or $0.26 per share, subject to
finalization at closing. The transaction is expected to be
slightly accretive to earnings per share in 1999.
"This is a major step in executing our previously announced
asset monetization program," said Robert E. Fowler, Jr.,
Chairman and Chief Executive Officer of IMC Global. "We will
use the proceeds from this transaction to retire debt, which
will further reduce our ongoing interest expense and
materially strengthen our balance sheet."
"While we have monetized substantially all of the value in our
IMC Chemicals business," Fowler continued, "we are pleased to
have retained an economic interest which could translate into
significant additional shareholder value as the global soda
ash industry strengthens in the years ahead. In addition, our
continued relationship will facilitate valuable cooperation in
product and process technology."
The new company, which will be led by IMC Chemicals' current
management team headed by President John F. Tancredi, has
estimated annual sales of about $430 million. It is expected
to remain headquartered in Overland Park, Kansas.
Soda ash is used for making glass, detergents, fiberglass, and
many industrial and specialty chemical products.
IMC Global acquired the soda ash and boron chemicals
businesses as part of its purchase of privately held Harris
Chemical Group, Inc. and its Australian affiliate, Penrice
Soda Products Pty. Ltd., on April 1, 1998.
<PAGE>
The transaction is subject to customary conditions, including
regulatory approval. Closing is anticipated during the first
quarter of 1999.
IMC Global is one of the world's leading producers and
suppliers of agricultural products and services, salt and
industrial chemicals. With 1997 revenues of nearly $3
billion, the Company is among the world's largest producers
and marketers of phosphate and potash crop nutrients and
animal feed ingredients. It is one of the nation's leading
distributors of agricultural products and services through its
FARMARKET (R) and Rainbow(R) networks. The Company is the
world's third-largest producer of both salt and soda
chemicals. It also produces sodium bicarbonate, boron
chemicals and magnesium chloride.
This news release contains forward-looking statements that
involve risks and uncertainties. These statements are based
on current expectations; actual results may differ materially.
Among the factors that could cause actual results to differ
materially are general business and economic conditions in
localities where the Company operates; the impact of
competitive products; pressure on prices realized by the
Company for its products; constraints on supplies of raw
materials used in manufacturing certain of the Company's
products; capacity constraints limiting the production of
certain products; difficulties or delays in the development,
production, testing, and marketing of products; difficulties
or delays in receiving required governmental or regulatory
approvals; market acceptance issues, including the failure of
products to generate anticipated sales levels; difficulties in
rationalizing acquired businesses and in realizing related
cost savings and other benefits; the effects of and changes in
trade, monetary and fiscal policies, laws and regulations;
foreign exchange rates and fluctuations in those rates; the
costs and effects of legal, including environmental, and
administrative proceedings involving the Company; and the
other risk factors reported from time to time in the Company's
SEC reports.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this amendment to be signed on its
behalf by the undersigned, thereunto duly authorized.
IMC GLOBAL INC.
/s/ J.Bradford James
----------------------
J.Bradford James
Senior Vice President and
Chief Financial Officer
Date: January 6, 1999
