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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): February 2, 1996
PIONEER COMPANIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-9859 06-1215192
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
4200 NATIONSBANK CENTER
700 LOUISIANA, HOUSTON, TEXAS 77002
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 713-225-3831
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NOT APPLICABLE
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On February 2, 1996, subsidiaries of Pioneer Companies, Inc. (the
"Company") completed the acquisition of Kemira Water Treatment, Inc. ("KWT"),
from a subsidiary of Kemira Oy of Finland ("Kemira"). KWT produces specialty
and commodity inorganic coagulants, including polyaluminum chloride, aluminum
sulfate, sodium aluminate and ferric sulfate, at its plant in Savannah, Georgia
for sale to the water treatment market in the eastern United States and the
Caribbean.
KWT is now owned by Kemwater North America Company ("Kemwater"), which
was formed through the Company's subsidiary, Pioneer Water Technologies, Inc.,
in combination with Imperial West Chemical Co. ("IWC"), a subsidiary of the
Company with facilities in Spokane, Washington; Albany, Oregon; and Antioch,
Pittsburg and Mojave, California. The combined businesses of KWT and IWC, the
latter of which produces ferric and ferrous chloride and aluminum sulfate for
sale to the water treatment market in the western United States, will be
carried out in the name of Kemwater. Kemwater will be adding ferric chloride
capacity to the Savannah plant, and production capacity for polyaluminum
chloride, sold under the tradename PAX, will be added to the western
operations.
As a part of the transaction, Kemwater also acquired exclusive
licenses to use Kemira's existing and future advanced water treatment
technology in the development and sale of products and services for the potable
water, waste water and industrial water treatment markets in the United States
(other than the northeastern U.S.) and the Caribbean. Kemwater has
nonexclusive access to the use of the technology for the Canadian and Mexican
markets, with an option to acquire an exclusive license for those markets in
the future.
Kemwater also entered into product supply agreements with subsidiaries
of Kemira, to ensure a continuing supply of granulated ferric sulfate and dry
aluminum sulfate, which are used as raw materials.
In management's opinion the acquisition did not constitute a
significant acquisition so as to give rise to the financial statement
disclosure requirements regarding significant acquisitions. However, the
dispositive determination as to the significance of the acquisition will be
based on the Company's financial statement balances for the fiscal year ended
December 31, 1995.
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SIGNATURES
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.
PIONEER COMPANIES, INC.
By: /s/ Kent R. Stephenson
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Name: Kent R. Stephenson, Vice President,
General Counsel and Secretary
Date: February 15, 1996
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