Mar 20 2006
Phelps Dodge has announced it has completed the sale of its Columbian Chemicals Co. subsidiary, a leading manufacturer of rubber and industrial carbon-black products, to a company owned jointly by One Equity Partners LLC, a private equity affiliate of JPMorgan Chase & Co., and South Korean-based DC Chemical Co. Ltd.
Under the agreement, which was announced Nov. 16, 2005, Phelps Dodge received base purchase price proceeds of $543 million and approximately $100 million of Columbian's foreign-held cash. The agreement also includes a provision for post-closing adjustments. At closing, those adjustments, together with transaction expenses, were estimated to reduce net proceeds by approximately $43 million, for net proceeds of approximately $600 million upon final settlement. The transaction resulted in special, net after-tax charges of approximately $65 million, resulting mostly from goodwill impairment charges, employee-related costs and tax benefits. Of that amount, approximately $43 million was recognized in the 2005 fourth quarter.
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