Business
Chemtrade to sell Montreal East business for $120 million
TORONTO , May 12, 2014 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced t...
About this update from Chemtrade Logistics Income Fund
[{"type":"text","content":"\n\n\nTORONTO, May 12, 2014 /CNW/ - Chemtrade Logistics Income Fund (TSX:\n CHE.UN) announced today that it has entered into an agreement to sell\n its Montreal East business to Suncor Energy Products Inc. for\n approximately $120 million. The business, which for a number of years\n provided services to other refineries in the Montreal area, now\n provides sulphur removal and compliance services only to Suncor's\n Montreal refinery. Chemtrade acquired the operation in 2011 as part of\n its acquisition of Marsulex, and will realize a gain of approximately\n $24 million on the sale. Chemtrade will also recognize the remaining\n amounts receivable (approximately $11 million) pursuant to an agreement\n with a previous customer of this facility.  Chemtrade will also\n continue to market sulphur and sodium bisulphite produced by the\n Montreal plant. Chemtrade will use the net proceeds of the sale to\n reduce debt. The sale, which is subject to normal closing conditions\n including compliance with the Competition Act, is expected to close in\n June.\n\n\nMark Davis, President and Chief Executive Officer of Chemtrade, said \"It\n was the right time for us to sell the operation to Suncor, as owner of\n the sole refinery being served by our Montreal facility.  The sale\n price represents essentially the same multiple we paid as part of the\n Marsulex transaction almost three years ago. Additionally, using the\n net proceeds to reduce debt improves our debt to EBITDA ratio following\n the recent acquisition of General Chemical, and the on-going marketing\n agreements will continue to generate revenue for Chemtrade.\n\n\n\"Operationally, the Montreal facility is in excellent shape and Suncor\n is gaining a skilled team that has provided outstanding service for\n many years.  We thank them for their dedication and commitment to\n operational excellence.\"\n\n\nAbout Chemtrade\n\n\nChemtrade operates a diversified business providing industrial chemicals\n and services to customers in North America and around the world.\n Chemtrade is one of North America's largest suppliers of sulphuric\n acid, inorganic coagulants for water treatment, liquid sulphur dioxide,\n sodium nitrite and sodium hydrosulphite.  Chemtrade is a leading\n processor of spent acid as well as a leading regional supplier of\n sulphur, sodium chlorate, ph...