LSB Industries, Inc. to Sell Climate Control Business to NIBE Industrier AB
Provides LSB with Improved Capital Structure and Greater Financial Flexibility to Drive Growth and Enhance Reliability and Profitability of Chemical Business
Proceeds from the transaction will primarily be used to pay down debt. As a result, LSB will have greater financial flexibility and an improved capital structure to execute its growth strategies for its core Chemical Business, including improving the Company’s chemical plant on-stream rates.
Mr. Greenwell continued, “As a focused chemicals company, our management team can now concentrate entirely on growing our Chemical Business by leveraging the substantial investments we have made over the last several years to enhance the reliability and profitability of our facilities. We are confident that the investments we made at El Dorado will significantly enhance our performance and look forward to the generation of strong cash flow from those facilities. Importantly, this transaction will enhance our financial flexibility and allow us to continue to invest in improving our plants. We look forward to realizing the benefits of a standalone LSB Chemical Business.”
The companies expect to close the transaction in the third quarter of 2016, subject to regulatory approvals and other customary closing conditions.
About
LSB is a manufacturing company. LSB’s principal business activities consist of the manufacture and sale of chemical products for the agricultural, mining, and industrial markets, and the manufacture and sale of commercial and residential climate control products, such as water source and geothermal heat pumps, hydronic fan coils, modular chillers, large custom air handlers and make-up air units.
Forward Looking Statement
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by use of the words “will”, “believes”, “expects”, “estimates”, “intends”, “anticipates”, “plans to”, “should”, “estimates”, “projects”, or similar expressions, including, without limitation, LSB’s plans and expectations with respect to the divestiture of CCB; pay down of debt; improved financial flexibility, capital structure, and chemical plant on-stream rates; enhanced reliability, performance, profitability and generation of cash flow from our facilities; and continued investment in improvement of plants.
Investors are cautioned that such forward-looking statements are not
guarantees of future performance and involve risk and uncertainties.
Though we believe that expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
expectation will prove to be correct. Actual results may differ
materially from the forward-looking statements as a result of various
factors, including, but not limited to: the possibility that the
transaction is delayed or does not close, including due to the inability
of LSB and NIBE to obtain all approvals necessary or the failure of
other closing conditions; general economic conditions; weather
conditions; increased costs to complete the El Dorado project; ability
to install necessary equipment and renovations at our Facilities in a
timely manner; changes to federal legislation or adverse regulations;
increased competitive pressures, domestic and foreign; ability to
complete transactions to address our leveraged balance sheet and cash
flow requirements; loss of significant customers; increased costs of raw
materials; and other factors set forth under “Risk Factors” and “Special
Note Regarding Forward-Looking Statements” in our Form 10-K for the year
ended
View source version on businesswire.com: http://www.businesswire.com/news/home/20160511006681/en/
Source:
Company:
LSB Industries, Inc.
Mark Behrman, (405)
235-4546
Chief Financial Officer
or
Investor Relations:
The
Equity Group Inc.
Fred Buonocore, (212) 836-9607
Linda Latman,
(212) 836-9609