| UPDATE | 07.03 |
| BUSINESS ACQUISITIONS |
OM Group Completes Sale of Precious Metals Business to Umicore for $814 Million Thursday July 31, 3:07 pm ET CLEVELAND, July 31 /PRNewswire-FirstCall/ -- OM Group, Inc. (NYSE: OMG - News) announced today that it has completed the previously announced sale of its Precious Metals business to Umicore for euro 697 million, or $814 million. OMG will use net proceeds of approximately $730 million to reduce debt. ADVERTISEMENT "This transaction is a significant milestone in our strategic plan for several reasons," said James P. Mooney, chairman and chief executive officer. "It allows us to dramatically improve our balance sheet and to focus solely on continuing to increase the profitability of our core Base Metals business. Likewise, it enables us to meet all of the terms and conditions of our amended Revolving Credit Facility and Term Loan Agreement with respect to asset sales long before the December 31, 2003, deadline." According to Thomas R. Miklich, OMG's chief financial officer, "The resulting debt reduction from this transaction will give the Company increased financial flexibility for its Base Metals business." He added, "The Company has secured a commitment for a new underwritten credit facility, which is expected to close in early August. " |
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