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

Kassel (euro adhoc) -

K+S acquires Morton Salt - Transaction creates global leader in salt
  ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
  the content of this announcement.
companies/finances/merger, acquisition and takeover/K+S
Kassel, 2 April 2009
K+S acquires Morton Salt -
Transaction creates global leader in salt
. 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
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.
end of announcement                               euro adhoc

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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