K+S Aktiengesellschaft

EANS-News: K+S Aktiengesellschaft
K+S acquires Morton Salt - Transaction creates global leader in salt

K+S acquires Morton Salt - Transaction creates global leader in salt

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companies/finances/merger, acquisition and takeover/K+S

Kassel (euro adhoc) - Kassel, 2 April 2009

K+S acquires Morton Salt -

Transaction creates global leader in salt

@@start.t2@@. Excellent opportunity to grow global salt business of K+S
      . Transaction value of USD 1.675 billion
      . 100% cash consideration, fully underwritten
      . Closing expected mid year 2009
      . Transaction marks another milestone of K+S' strategy towards
         balanced growth and enhanced profitability

K+S Aktiengesellschaft, one of the world's leading suppliers of speciality  and@@end@@

standard fertilizers, plant care as well as salt products, announced today that it has come to an agreement with Rohm and Haas, a wholly   owned  subsidiary  of The Dow Chemical Company to acquire Morton International, Inc.  (Morton  Salt), one of the leading producers of consumer, industrial and de-icing salt in North America. Closing for the transaction which values Morton Salt at an  enterprise value of USD 1.675 billion is expected by mid year 2009  following  receipt   of the required approvals from antitrust authorities.

"Morton Salt is an excellent opportunity to grow  our  global  salt   business", said Norbert Steiner, Chairman of the Board of Executive Directors of K+S.  "It marks another milestone in our strategy towards balanced growth,  enhances  our profitability and as a result strengthens K+S  Group  overall,  in  Europe  and Overseas. As  one   of  the  leading  salt  producers,  Morton  Salt  offers  us widespread, close-to-customer production sites in the U.S.  and   Canada  and  a nationwide distribution network. Through Morton Salt we gain access to new  and less volatile de-icing regions.  It   extends  and  diversifies  our  geographic presence and  enhances   our  positions  in  the  North  American  consumer  and industrial salt markets."

The acquisition of Morton Salt will make K+S  the  North  American   and  global leader in salt. In 2008, Morton Salt achieved revenues of USD 1.2  billion  and EBITDA of USD 270 million. Morton Salt operates 6  rock  salt  mines,  7  solar evaporation facilities, 10 vacuum pan operations as well as 62 salt  stockpiles and 61 distribution centers. Its annual salt  production  capacity  amounts  to 13.1 million tonnes. Founded in 1848, Morton Salt has 2,900  employees   and  is headquartered in Chicago.

The purchase price will be paid in cash. The financing is fully underwritten by Dresdner Kleinwort, Société Générale and Unicredit (HVB). While  maintaining  a strong and flexible balance sheet, the   transaction  is  consistent  with  K+S' acquisition criteria. The acquisition will be clearly EPS accretive  from  2010 onwards. "Morton Salt is a profitable business with strong cash flow generation and provides us with operational synergy potential by   leveraging  the  leading salt consumer brand ("The  Morton  Umbrella Girl")  to  its  existing  product portfolio and by optimizing logistics between Chile, Brazil and North America", said Norbert Steiner.

"Our  business  operations  are  highly  complementary  and  we   share  a  deep understanding of the salt business which will facilitate a  smooth  integration and deliver immediate benefits to employees,  customers  and  shareholders.  We look forward to working together with an excellent team to realize  the  growth opportunities that lay ahead", he added.

K+S and Dow Chemical have carefully  analyzed  the  business   combination  with respect to potential antitrust and other regulatory considerations and  do  not foresee any issues in this regard.

Note to editors K+S will host a conference call for media today, 2 April 2009, at  11  am  CEST (in German) and a conference call for analysts  and  investors  today,  2 April 2009, at 3 pm CEST/ 9 am EST (in English). You may participate in both calls by using the following dial-in number: +49 (0) 40 37707 9033.

Norbert Steiner, Chairman of the Board of Executive Directors of K+S, will host both calls. In addition, the investor and analyst call can be accessed on www.k-plus-s.com.

Your contact persons:

Press: Oliver Morgenthal phone: +49 561 9301-1047 fax: +49 561 9301-1666 oliver.morgenthal@k-plus-s.com

Investor Relations: Christian Herrmann phone: +49 561 9301-1460 fax: +49 561 9301-2425 christian.herrmann@k-plus-s.com

Experience growth The K+S Group is one  of  the  world's  leading   suppliers  of  speciality  and standard fertilizers, plant care as well as salt products.  With  its  products and brands, K+S offers its customers a range of needs-based goods and  services which provides growth opportunities in virtually every sphere  of  daily   life. The K+S Group employs  12,000  people  and  achieved  revenues of  just  under EUR 5.0 billion in 2008. K+S is quoted  on  all   German  stock  exchanges (ISIN: DE0007162000, symbol: SDF) and listed on the DAX® share index.

Forward-looking statements This press release contains facts and   forecasts  that  relate  to  the  future development of the K+S Group and its companies.  The  forecasts  are  estimates that we have made on the basis of all the information available to us  at  this moment in time. Should the assumptions underlying these forecasts prove not to be correct, actual events may deviate from those expected at the present time.

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ots Originaltext: K+S Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Press:
Oliver Morgenthal
phone: +49 561 9301-1047
fax: +49 561 9301-1666
oliver.morgenthal@k-plus-s.com

Investor Relations:
Christian Herrmann
phone: +49 561 9301-1460
fax: +49 561 9301-2425
christian.herrmann@k-plus-s.com

Branche: Chemicals
ISIN:      DE0007162000
WKN:        716200
Index:    DAX, Midcap Market Index, CDAX, Classic All Share, HDAX,
              Prime All Share
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / regulated dealing
              Börse Hamburg / regulated dealing
              Börse Stuttgart / regulated dealing
              Börse Düsseldorf / regulated dealing
              Börse Hannover / regulated dealing
              Börse München / regulated dealing



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