Marsulex buys Westaim Chemicals division for $18 million

Marsulex Inc. has acquired the assets of Westaim Corporation's chemical division for $18 million.

TORONTO, ONTARIO, an. 2, 2001—Marsulex Inc. (TSE: MLX) has acquired the assets of Westaim Corporation's chemical division for $18 million. The division consists of two Alberta-based chemical manufacturers and distributors, United Chemicals Company and Thio-Pet Chemicals Ltd. UCC is a producer of water treatment chemicals and Thio-Pet manufactures industrial chemicals.

Marsulex President and Chief Executive Officer, David Gee, said both companies are leaders in their markets and have established long-term track records for quality and reliability. "The businesses have consistently generated stable revenues and strong earnings and will be immediately accretive to Marsulex cash flow and earnings. The acquisition complements our existing western Canadian operations and offers the opportunity to realize attractive synergies through integration with our existing business." Mr. Gee said some of the synergies will come from opportunities to cross-sell to each other's existing customers.

Mark Davis, President of North American Operations for Marsulex said, "Our western markets business unit has been a strong contributor to our North American earnings, and this acquisition will give us additional critical mass that will generate efficiencies, strengthen customer relationships, broaden our portfolio of sulphur-based process know-how and extend our geographic reach."

UCC produces water treatment chemicals at facilities in Calgary, Alberta and Saskatoon, Saskatchewan and has customers in the industrial, commercial and municipal sectors. Thio-Pet's manufacturing plant in Fort Saskatchewan, Alberta is adjacent to Marsulex's existing Fort Saskatchewan manufacturing facility and produces hydrogen sulphide for use in Canada, the United States and Europe, and carbon disulphide which is marketed to chemical companies in Canada and the United States. Together, UCC and Thio-Pet have 23 employees. For the ten months ended October 31, 2000, Westaim reported that the acquired businesses generated revenue of $10.3 million and EBITDA of $3.2 million.

Marsulex is a global provider of technology-based environmental compliance solutions. It provides full-service outsourcing of environmental compliance activities including the ownership and operation of compliance assets and the guaranteed removal of by-products. Marsulex trades on the Toronto Stock Exchange under the symbol MLX.

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