Nirma has entered into definitive agreement for the acquisition of USA based natural soda ash producer. Searles Valley Minerals Operations Inc. and Searles Valley Minerals Inc. (collectively SVM), from an affiliate of Sun Capital Partners. Inc. and other minority shareholders for full ownership.The HSBC Securities and Capital Markets (India) advised the company on the transaction and J. P. Morgan Securities Inc. advised SVM. Wilson Sonsini Goodrich & Rosati served as US Legal Counsel to the company with AZB Partners as Indian Counsel. Due diligence related to finance, employee and tax matters was conducted by KPMG.
SVM, a leading manufacturer of inorganic chemicals, is one of the five natural soda ash manufacturers in the USA. SVM is the only US producer of soda ash, sodium borates, boric acid and sodium sulfate utilizing the solution mining method. Solution mining offers major advantages in the reduction of labor costs compared to the conventional underground mining, in addition to the solution mining processes, SVM produces sodium chloride from solar pond evaporation.
The company made this announcement during the trading hours today, 27 November 2007.
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