United States Lime & Minerals Inc. has acquired Inter-Rock Minerals Inc.’s Oklahoma-based dolomite business, Mill Creek Dolomite LLC.
The $6.4 million cash deal excludes Mill Creek debt and accrued interest of $2.24 million that was repaid at closing on Feb. 9, with a portion of the proceeds of the sale in accordance with the terms of the sale agreement. After the repayment of debt and initial working capital adjustments, the company will receive net cash of $3.53 million, subject to further working capital and other adjustments, if any.
Mill Creek Dolomite’s plant is located in Mill Creek, Okla. Although most mined dolomite in North America is used in construction aggregates, the purity and decrepitation characteristics of the Mill Creek dolomite deposit allows for the production of higher value products.
Mill Creek sells its products into specialty markets for dolomite, principally the glass, roofing materials, and agricultural lime markets. About 70% of Mill Creek’s sales volume is to the glass industry. Flat glass manufacturers value the purity, low decrepitation and the consistency of the concentration of calcium and magnesium in Mill Creek’s dolomite.
The filler market, primarily for asphalt shingles accounts for about 20% of Mill Creek’s sales volume and the remaining 10% of sales are to the aglime market. Mill Creek’s aglime products are soil additives that reduce soil acidity and provide a high purity source of calcium and magnesium for plants.
Mill Creek is ideally located to serve the large concentration of glass and asphalt shingle manufacturers in Texas, Oklahoma and eastern Kansas. Almost all of Mill Creek’s product shipments are by truck.
Mill Creek’s plant has been recently upgraded, primarily to expand capacity to allow for increased sales to the glass industry. Capital improvements included the rebuilding of a crusher and the purchase of new mobile crushing and screening equipment.
Inter-Rock determined that it was in the best interest of the company to focus on the animal feed nutritional supplement market. With the sale of Mill Creek, Inter-Rock’s businesses are now exclusively focused on providing premium animal feed supplements, primarily to the U.S. dairy industry.