(PR) Inco Limited Announces Agreement To Sell Its Alloys Business To An Affiliate Of Blackstone Capital Partners
TORONTO, June 11 /CNW-PRN/ - Inco Limited ("Inco") and Blackstone Capital Partners II Merchant Banking Fund L.P. ("Blackstone") today jointly announced the execution of a definitive agreement for the sale by Inco of 100 per cent of its Inco Alloys International ("IAI") business unit to an affiliate of Blackstone. Blackstone, a leading merchant banking firm based in New York, currently owns approximately 80 per cent of Haynes International, Inc. ("Haynes"), a producer of nickel and other alloys based in Kokomo, Indiana, and plans to combine the operations of Haynes and IAI following the consummation of the transaction.
IAI is a manufacturer of nickel and other alloys which are used primarily in the aerospace, chemical processing, power generation, pollution control, and oil and gas industries. IAI has its principal operations in the United States and the United Kingdom with joint ventures, distribution and other related businesses located in several other countries, including Japan, Canada and France.
Upon the closing of the sale of IAI, expected to take place in the fall of 1997, Inco currently expects to receive net proceeds, after fees and expenses, of approximately U.S. $410 million and realize an after-tax gain of approximately U.S. $85 million. The purchase price is subject to adjustment based upon IAI's net worth at the time of closing. Completion of the sale will be subject to a number of conditions and the receipt of regulatory and other approvals, including antitrust clearance.
Inco plans to use the proceeds of the sale for general corporate purposes, including the repayment of debt and the repurchase of its common shares through open market purchases from time to time, subject to approvals from regulatory authorities and market conditions. Any such share repurchases would be subject to maintenance of Inco's investment grade credit ratings.
Inco is one of the world's premier mining and metals companies. It is a
leading producer of nickel, supplying about 27 per cent of the world's total demand. Inco is also an important producer of copper, precious metals, and cobalt.
The Blackstone Group L.P. is a private investment bank based in New York and founded in 1985 by Peter G. Peterson, its current Chairman, and Stephen A. Schwarzman, its current Chief Executive Officer. The Blackstone Group's main businesses include strictly friendly principal investments, real estate investing, asset management and merger and acquisition advisory services. Blackstone Capital Partners II Merchant Banking Fund L.P., the firm's principal investment vehicle, has approximately U.S.$1.3 billion of committed equity capital.
/CONTACT: INCO LIMITED: Media Relations, David A. Allen, (416) 361-7669;
Investor Relations, N. Kurt Barnes (212) 612-5788; BLACKSTONE CAPITAL PARTNERS II MERCHANT BANKING FUND L.P.: Glenn H. Hutchins, (212) 836-9815; Chinh E. Chu, (212) 836-9872/
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