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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 24, 1998
IMC GLOBAL INC.
(Exact Name of Registrant as Specified in Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
1-9759
(Commission File Number)
36-3492467
(IRS Employer Identification No.)
2100 SANDERS ROAD, NORTHBROOK, ILLINOIS 60062
(Address of Principal Executive Offices) (Zip Code)
(847) 272-9200
(Registrants' Telephone Number, Including Area Code)
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Item 5. Other Events.
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The following is the text of a press release issued by IMC Global Inc.
("IMC Global") relating to the sale by IMC Global of its soda ash and boron
chemicals businesses.
NORTHBROOK, Ill., Dec. 28 - 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.
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)
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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 the 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.
IMC Global news releases are available on the Company's Web site:
http://www.imcglobal.com. They also can be obtained in the U.S. at no
charge via fax by calling "Company News On-Call" at 800-758-5804, ext.
433650.
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SIGNATURE
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 hereto duly authorized.
IMC GLOBAL INC.
DATED: January 8, 1999 By: /s/ Phillip Gordon
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Name: Phillip Gordon
Title: Senior Vice President
and General Counsel
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