PAHC Phibro Animal S

 

TIDMPAHC 
 
RNS Number : 2745N 
Phibro Animal Health Corporation 
13 February 2009 
 
For release: IMMEDIATE 
 
 
 
 
 
 
PHIBRO ANIMAL HEALTH CORPORATION AGREES TO ACQUIRE BALTZELL AGRI PRODUCTS TRACE 
MINERALS BUSINESS 
 
 
RIDGEFIELD PARK, New Jersey, 13 February 2009 - Phibro Animal Health Corporation 
("PAHC" or the "Company") announced today that Prince Agri Products, Inc. 
("Prince Agri"), a subsidiary of the Company, has agreed to acquire the Baltzell 
Agri Products ("BAP") trace minerals business. 
 
 
BAP is a manufacturer and marketer of an extensive line of trace minerals, trace 
mineral premixes, selenium premixes and other nutritional ingredients to the 
animal feed and pet food industries in the United States. The products generally 
are mixed with animal feeds and pet foods to fortify and enhance their 
nutritional value. BAP serves customers in all animal feed segments, including 
cattle, dairy, swine, poultry, and companion animals. BAP produces trace mineral 
premixes at its blending facility in Omaha, Nebraska, with a workforce of 50 
employees. 
 
 
The purchase price for the business is US $24 million; subject to adjustment 
based on working capital at closing. Assets acquired include approximately $11 
million of net working capital plus manufacturing plant and equipment and 
intangible assets valued in total at approximately $13 million. 
 
 
BAP was profitable in its last fiscal year.The Company expects the transaction 
will not have a significant effect on net income in the first year after 
acquisition. 
 
 
The transaction is subject to certain closing conditions and is expected to 
close in March 2009. 
 
 
Dean Warras, President of Prince Agri, commented: "BAP is well known in the 
industry for its strong customer relationships, quality manufacturing 
operations, and excellent workforce.  The integration of our trace mineral 
businesses will enable Prince Agri to serve an expanded geographical market from 
multiple production facilities and will ensure our customers continue to receive 
the cost-effective, high quality products they need for today's demanding market 
environment." 
 
The acquisition will be financed through a $24 million term loan from 3i Quoted 
Private Equity plc ("3i QPEP") to the Company. 
 
 
The 3i QPEP term loan is payable in full at maturity on 1 August 2013 and bears 
interest, payable quarterly, at the rate of 11% per annum. In connection with 
such loan, 3i QPEP has been issued a warrant to purchase approximately 2.1 
million common shares of the Company at a price of $5.23 per share. The warrant 
is exercisable at any time at the holder's option until it expires on 1 August 
2013. The 3i QPEP term loan ranks equal to PAHC's domestic senior credit 
facility and 10% Senior Notes. 
 
 
3i QPEP owns approximately 30% of the outstanding common shares of the 
Company. Mr Alan MacKay has been appointed as a director of the Company by 3i 
QPEP and is a founding partner of the 3i Investments plc team that advises 3i 
QPEP. The term loan, including the associated issuance of the warrant, is a 
related party transaction under Rule 13 of the AIM Rules for Companies. The 
directors of PAHC (without the participation of Mr. Alan MacKay) consider, 
having consulted with its nominated adviser, Panmure Gordon (UK) Limited, that 
the terms of the 3i QPEP loan and warrant are fair and reasonable insofar as its 
shareholders are concerned. 
 
 
 
 
 
 
 
 
ABOUT THE COMPANY 
PAHC is a diversified global manufacturer and marketer of a broad range of 
animal health and nutrition products to the poultry, swine and cattle markets. 
PAHC is also a manufacturer and marketer of performance products for the 
ethanol, wood preservation and personal care industries. For more information, 
please visit www.pahc.com. 
 
 
For further information please contact: 
 
 
+------------------------------------------------+--------------------------+ 
| Phibro Animal Health Corporation               | +1 201 329 7300          | 
| Richard Johnson, Chief Financial Officer       |                          | 
| investor.relations@pahc.com                    |                          | 
+------------------------------------------------+--------------------------+ 
|                                                |                          | 
+------------------------------------------------+--------------------------+ 
| Panmure Gordon (UK) Limited                    | +44 (0) 207 459 3600     | 
| Andrew Godber                                  |                          | 
| Rakesh Sharma                                  |                          | 
|                                                |                          | 
+------------------------------------------------+--------------------------+ 
 
 
FORWARD-LOOKING STATEMENTS 
This announcement contains forward-looking statements, including statements 
regarding management's expectations and beliefs regarding the future results or 
performance of the Company. Because these statements apply to future events, 
they are subject to risks and uncertainties. When used in this announcement, the 
words "anticipate," "believe," "estimate," "expect," "expectation," "project," 
"intend" and similar expressions are intended to identify such forward-looking 
statements. Our actual results could differ materially from those projected in 
the forward-looking statements. Additionally, you should not consider past 
results to be an indication of our future performance. We do not intend to 
update any of the forward-looking statements after the date of this announcement 
to conform these statements to actual results, to changes in management's 
expectations or otherwise, except as may be required by law. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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