Snake River Sugar Company signed an agreement to acquire the remaining stake in The Amalgamated Sugar Company LLC from Valhi, Inc. for approximately $260 million.
June 03, 2018
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Snake River Sugar Company signed an agreement to acquire the remaining stake in The Amalgamated Sugar Company LLC from Valhi, Inc. (NYSE:VHI) for approximately $260 million on May 30, 2018. The consideration consists of $12.5 million in cash and the deemed payment in full of $250 million in loans owed by Valhi, Inc. to Snake River Sugar Company. The loans include certain limited recourse promissory Note in the principal amount of $212.5 million dated January 3, 1997 and certain subordinated promissory note in the principal amount of $37.5 million dated January 3, 1997. The transaction is subject to Snake River Sugar Company obtaining any and all required consents of the secured lenders of Snake River Sugar Company and The Amalgamated Sugar Company LLC, duly executed amendments to the current credit agreements and related documents of Snake River Sugar Company and The Amalgamated Sugar Company LLC permitting the transaction and refinancing of the secured debt of Snake River Sugar Company and The Amalgamated Sugar Company LLC. The transaction is expected to be completed on August 31, 2018. Paul M. Boyd of Stoel Rives LLP acted as legal advisor for Snake River Sugar Company and The Amalgamated Sugar Company LLC.
Valhi, Inc. is primarily a holding company, which operates through its subsidiaries, NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., BasicManagement, Inc. and The LandWell Company. Its segments include Chemicals, Component Products, and Real Estate Management and Development. Chemicals segment produces and markets value-added titanium dioxide pigments. Component Products segment manufactures security products used in the postal, recreational transportation, office and institutional furniture, cabinetry, tool storage, healthcare and a variety of other industries. The segment also a manufacture wake enhancement system, stainless steel exhaust systems, gauges, throttle controls, trim tabs and related hardware and accessories for the recreational marine industry. Real Estate Management and Development segment owns real property in Henderson, Nevada. The segment develops certain land holdings for commercial, industrial and residential purposes in Henderson, Nevada.
Snake River Sugar Company signed an agreement to acquire the remaining stake in The Amalgamated Sugar Company LLC from Valhi, Inc. for approximately $260 million.