Zemex Corp. formally terminated its contract with Hecla Mining
Co. to purchase Hecla's Kentucky-Tennessee Clay Co. subsidiary, giving Imerys the opportunity it had been looking for.
Zemex Corp. has formally terminated its contract with Hecla Mining
Co. to purchase Hecla's Kentucky-Tennessee Clay Co. subsidiary, and Imerys has stepped in to seize the opportunity. Zemex had previously notified Hecla that because of a material adverse
change in K-T Clay's business, the conditions to Zemex's obligation
to purchase K-T Clay had not been satisfied. "We regret that we were
forced to take this action," said Richard Lister, president of
Zemex. "K-T Clay would be a fine strategic acquisition for us, but
the dramatic deterioration in K-T Clay's operating results after the
time we agreed to purchase it left us no alternative."
In late February, Imerys signed an agreement with Hecla Mining to purchase K-T Clay. This acquisition which should be completed in early April 2001, would give Imerys a global position on the raw materials for sanitaryware market.