Marsulex Inc., a producer and supplier of sulfur-based industrial chemicals, said March 23 that it has initiated a review of strategic options for the company. It has started a broad-based process that includes review of opportunities for strategic alliances, joint ventures, mergers, or a corporate sale of all or part of the business. It said there can be no assurances that this process will result in any transaction.
“We think that Marsulex’s strong balance sheet, consistent financial performance, attractive growth prospects, technological capabilities, and customer base are attractive attributes as we proceed with the strategic review,” said Laurie Tugman, Marsulex president and CEO.
Marsulex has engaged TD Securities Inc., CIBC World Markets Inc., and Houlihan Lokey as advisors. No timetable has been set for completion of the review.
In the meantime, Marsulex says it continues to conduct its business as usual and remains fully focused on providing environmental compliance solutions for customers.
Earlier this month, Tugman touted company performance, saying “it has now realized five consecutive years of growth in EBITDA and net earnings, demonstrating the underlying strength and sustainability of our business through the economic cycle.” Marsulex 2009 net earnings were up 61.4 percent, to C$33.4 million on sales of C$300.5 million from 2008’s C$20.7 million and C$322.6 million, respectively. EBITDA for 2009 was C$82.3 million, up from 2008’s C$69 million. Positive earnings continued into the fourth quarter, with the company posting net earnings of C$6 million on revenues of C$62.7 million, versus the year-ago C$3.2 million and C$75.1 million, respectively. EBITDA was down slightly, however, to C$13.7 million from the year-ago C$14.9 million.
In addition to its sulfur business, Toronto-based Marsulex is also a provider of industrial services, including environmental compliance solutions for air quality control and processing or handling of industrial by-products or waste streams.