OM Group, Inc. Completes Divestiture Of Its Cobalt Business For $325 Million In Cash

 OM Group, Inc. Completes Divestiture Of Its Cobalt Business For $325 Million
                                   In Cash

PR Newswire

CLEVELAND, March 29, 2013

CLEVELAND, March 29, 2013 /PRNewswire/ -- OM Group, Inc. (NYSE: OMG) today
announced that it has completed the previously-announced divestiture of its
Advanced Materials business, including the sale of its downstream business, to
a joint venture held by Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX),
Lundin Mining Corporation (TSX:LUN) and La Generale des Carrieres et des
Mines (Gecamines). OM Group received cash consideration of $325 million, plus
approximately $30 million for cash retained in the business, upon the closing
of the transaction. OM Group expects to use these proceeds, along with cash
on-hand, to repay a substantial portion of its debt. The sale agreements also
provide for potential future cash consideration of up to an additional $110
million based on the business achieving certain revenue targets over a period
of three years.

In connection with the sale, OM Group also transferred its equity interests in
its DRC-based joint venture known as GTL to its joint venture partners,
subject to a security interest in favor of OM Group with respect to the joint
venture's performance of certain supply arrangements.

Following the sale, to assist the buyer of the downstream business with the
ownership transition, the Company will act as an intermediary of cobalt supply
between GTL and the Freeport joint venture under a two-year agreement subject
to delivery of 7,000 MT of feed. Also, OM Group will continue to serve as the
U.S. distributor for refined cobalt products for a period of one year. Both
of these transition service agreements are back-to-back arrangements with
minimal profit or cash flow impact anticipated for OM Group.


OM Group is a technology-based industrial growth company serving attractive
global markets, including automotive systems, electronic devices, aerospace,
industrial and renewable energy. Its business platforms use innovative
technologies and expertise to address customers' complex applications and
demanding requirements. For more information, visit the Company's website at


The foregoing discussion may include forward-looking statements for purposes
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are based upon specific assumptions
and are subject to uncertainties and factors relating to the company's
operations and business environment, all of which are difficult to predict and
many of which are beyond the control of the company. These uncertainties and
factors could cause actual results of the company to differ materially from
those expressed or implied in the forward-looking statements contained in the
foregoing discussion. Such uncertainties and factors include: risks arising
from uncertainty in worldwide economic conditions; extended business
interruption at our facilities; fluctuations in the price and uncertainties in
the supply of rare earth materials and other raw materials; our ability to
identify, complete and integrate acquisitions aligned with our strategy;
restrictive covenants in our Senior Secured Credit Facility which may affect
our ability to operate our business successfully; indebtedness may impair our
ability to operate our business successfully; changes in effective tax rates
or adverse outcomes resulting from examination of our income tax returns; the
majority of our operations are outside the United States, which subjects us to
risks that may adversely affect our operating results; level of returns on
pension plan assets and changes in the actuarial assumptions; the majority of
our cash is generated and held outside the United States; the timing and
amount of common share repurchases, if any; fluctuations in foreign exchange
rates; unanticipated costs or liabilities for compliance with environmental
regulation; changes in environmental, health and safety regulatory
requirements; technological changes in our industry or in our customers'
products; our ability to adequately protect or enforce our intellectual
property rights; disruption of our relationship with key customers or any
material adverse change in their businesses; successful execution of the GTL
supply agreement signed in connection with the Advanced Materials sale; and
the Risk Factors set forth in Part I, Item 1A of our Annual Report on Form
10-K for the year ended December 31, 2012.

SOURCE OM Group, Inc.

Contact: Rob Pierce, Vice President, Finance, +1-216-263-7489
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