Höganäs AB buys American iron powder manufacturer

Höganäs AB buys American iron powder manufacturer As a further step in its establishment strategy for the North American market, Höganäs AB has entered into an agreement with Zemex Corporation whereby Höganäs is to acquire Pyron Corporation, a subsidiary of Zemex. Pyron Corp. produces both atomized and sponge iron powders. Atomized iron powder is used principally for component manufacture. Pyron Corp.'s sponge iron powder has unique properties and is used mainly in a number of special applications including production of friction materials. Pyron Corp. holds a share of about 8% of the North American iron powder market. The company's principal base of operations is at Niagara Falls, NY, and it has a blending facility in St. Mary's, PA. The total number of employees is about 120. The company is in need of investment for continued ex- pansion. In addition to giving a significant boost to Höganäs' market share in North America, this acquisition is expected to yield substantial synergy effects, e.g. through technology transfer and utilization of Höganäs' international marketing organization to sell Pyron Corp.'s unique products. Further synergies will be achieved by coordination of Pyron Corp.'s planned investments with conversion of the recently acquired FirstMiss Steel mill into a high-efficiency production facility for atomized powder. The transaction will also involve Zemex's subsidiary Pyron Metal Powders Inc., which will be sold in a related transaction to ACuPowder International, LLC. Pyron Metal Powders' principal products are copper and bronze powder, which are manufactured at two plants in Tennessee. The value of the combined transactions will be about MUSD 41 subject to closing adjustments. Pyron Corp.'s operations are expected to make a positive contribution to the Höganäs Group's pre-tax profits for the year 2000, and the acquisition will not generate any goodwill. The purchase is subject to approval by the American antitrust authority. Toronto 6 March 2000 Claes Lindqvist President and Chief Executive Officer ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/07/20000307BIT00200/bit0001.doc http://www.bit.se/bitonline/2000/03/07/20000307BIT00200/bit0002.pdf