Nirma enters into definitive agreement for the acquisition of USA based Natural Soda Ash producer

Nirma Ltd has informed that the Company has entered into definitive agreement for the acquisition of USA based Natural Soda Ash producer. Searles Valley Minerals Operations Inc. and Searles Valley Minerals Inc. (collectively, SVM), from an affiliate of Sun Capital Partners. Inc. and other minority shareholders for full ownership.

The definitive agreement for the acquisition among other things, is subject to customary regulatory clearances.

The HSBC Securities and Capital Markets (India) Pvt Ltd advised the Company on the transaction and J. P. Morgan Securities Inc. advised SVM. Wilson Sonsini Goodrich & Rosati served as US Legal Counsel to the Company with AZB Partners as Indian Counsel. Due diligence related to finance, employee and tax matters was conducted by KPMG.

About SVM

SVM, a leading manufacturer of inorganic chemicals, is one of the five natural soda ash manufacturers in the USA. SVM is the only US producer of soda ash, sodium borates, boric acid and sodium sulfate utilizing the solution mining method. Solution mining offers major advantages in the reduction of labor costs compared to the conventional underground mining, in addition to the solution mining processes, SVM produces sodium chloride from solar pond evaporation.

SVM has three manufacturing facilities located at Argus, Trona and Westend, California. USA. The Argus facility manufactures Soda Ash, the Trona facility produces Boric Acid, anhydrous borax and borax decahydrate and the Westend facility productes sodium borate pentahydrate, sodium sulfate and sodium chloride. SVM owns some of its mineral reserves and also produces from long-term leases with the US Bureau of Land Management. Total mineral reserves are in excess of 600 million tons, sufficient for 300 to 400 years production at current production level. SVM has a combined production capacity for all products of over 1.9 million tons. It transports 80% of its production by rail to domestic customers and to export markets through the ports of San Diego, California and Long Beach, California. SVM also has a 67 megawatt /hours co-generalion power plant, a short line railroad and a joint venture in port operations at the Port of Long Beach. SVM leases and operates its own port / berthing facility in San Diego and owns a 31 mile short-line railroad that connects directly to the Union Pacific Railroad at Searles Station, California. As part of its logistic operations, SVM owns 6 locomotives, leases about 1600 product hopper cars and about 175 coal cars.