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IBC Advanced Alloys Closes Acquisition of Specialloy Copper Alloys, LLC
IBC, through its wholly owned subsidiaries IBC US Holdings Inc. ("IBC US") and Nonferrous Products Inc. ("Nonferrous"), acquired the title in and membership interests of Specialloy held by Denis Brady and Billie D. Gray (the "Vendors"). IBC paid an aggregate cash consideration of US$25,000 to the Vendors in conjunction with the closing of the transaction. In connection with the membership interest and purchase sale agreement, Nonferrous signed an exchange agreement with Specialloy whereby Specialloy converted US$450,000 of debt owed to Nonferrous to membership interests. The aggregate value ascribed to Specialloy is therefore US$475,000. Denis Brady forgave US$99,150 owed to him by Specialloy and Nonferrous exchanged its debt due to it for IBC to hold a 100% membership interest in Specialloy.
"IBC is pleased to have signed this membership interest purchase and sale agreement with Specialloy. We are looking forward to integrating Specialloy's production capabilities with our existing manufacturing divisions to develop a broader sales and production system to better service our customers", said Anthony Dutton, president and CEO of IBC. "Specialloy has the capacity to supplement our existing beryllium-based casting and forging business and lead to increased production of advanced alloy products."
Specialloy has operated since 1952 and manufactures and processes a range of copper master alloy, used by foundries to produce copper alloy products, and copper-based alloys in billet and slab form, including beryllium copper alloys. Specialloy opened its existing Missouri facility in 1988 to more cost-efficiently produce products from larger furnaces, and in 1992 closed its Chicago plant. At its height of production, Specialloy served customers in North America, Europe and Asia and developed a global reputation for specialty copper alloys.
The Specialloy plant is a manufacturing and warehouse building totalling 26,500 square feet, located on a six-acre site in New Madrid, Missouri, USA, approximately 250 kilometres south of St. Louis and situated on the Mississippi River. It has two furnaces and is capable of producing billets in a range of sizes and compositions. At its peak of operations, the company employed 50 employees and produced 7,000,000 lbs. of alloys annually, including red alloys and non-beryllium alloys. It produced considerably less in the past two years, after financially-driven shutdowns and ownership changes. It currently has seven employees.
This unique business has a lengthy history of producing a range of master alloys, the highest purity fused alloys available for making additions to copper, brass or bronze. Specialloy has the background to produce a variety of master alloys on demand, which can be made to meet a variety of commercial or military specifications, for both North American and international customers.
IBC plans to integrate and consolidate Specialloy's operations with its other manufacturing operations, the Freedom Alloys division, which manufactures beryllium alloys in Royersford, Pennsylvania, USA, and the Nonferrous division, a manufacturer of forged copper, beryllium, copper and bronze alloys based in Franklin, Indiana, USA. IBC acquired these businesses in May 2008 and October 2008, respectively. Specialloy's manufacturing infrastructure and processes are complementary to the Nonferrous and Freedom divisions and will further integrate IBC's manufacturing value chain.
This acquisition was approved by the TSX Venture Exchange on March 31, 2009.
About IBC Advanced Alloys Corp.
IBC Advanced Alloys Corp. is an integrated manufacturer and distributor of beryllium based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 65 employees and is headquartered in Vancouver, Canada with production facilities in Pennsylvania and Indiana. Additionally, IBC owns prospective beryllium properties in Brazil and the Western US covering approximately 9,500 hectares. IBC is creating a dynamic global beryllium and advanced alloys company. IBC's common shares are traded on the TSX Venture Exchange under the symbol "IB".
IBC Advanced Alloys Corp.
Ian Tootill, Director of Corporate Communications
(604) 685-6263 ext 110
Legal Notice Regarding Forward Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing operations and mineral exploration, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.