Total proceeds from the sale, including excess cash in the business, are expected to be $165 million, subject to working capital adjustments. The completion of the transaction is subject to certain customary conditions, including receipt of a limited number of regulatory approvals, but is not subject to any financing condition.
The parties expect the transaction to be completed by mid May, 2008. Following the transaction, the main office of the Active Ingredients and Specialty Chemicals division will remain in Quebec City under the leadership of Charles Boulanger, president of the Active Ingredients and Specialty Chemicals division, and its existing management team.
Pierre Fitzgibbon, president and CEO of Atrium, said: “This transaction will allow us to optimize the creation of shareholder value by focusing exclusively on the Health and Nutrition industry, where we intend to continue to play the role of a strategic consolidator in a conducive industry environment.”