China's General Steel to acquire Virginia-based Catalon

THE Virginia-based Catalon's honeycomb technology is an integral part of the selective catalytic reduction process widely used in steel mills, thermal power stations, waste incinerators, stationary diesel motors, industrial plants, and heavy-duty trucks. 

 

Under the terms of the agreement, existing Catalon shareholders will receive a total equivalent value of approximately $16.9 million or up to a maximum of 13 million shares of General Steel Common Stock.  Based on General Steel's closing stock price of $0.63 on September 15, 2015, the equivalent value of $1.30 per share represents a 97.0% premium to the Company's 20-day volume weighted average price of $0.66 per share, and a 106.3% premium to its most recent closing stock price. 

 

Ms. Yunshan Li, Chief Executive Officer of General Steel commented, "We are very excited about the myriad of new business opportunities and synergies brought forth through this acquisition. With a talented team of executives, prominent shareholders, and proven technology and expertise, Catalon has been an innovative leader in R&D and commercialization of De-NOx honeycomb catalysts in the US, and we believe Catalon's comprehensive suite of products and services is an ideal fit for General Steel and a great leap forward for our business transformation.

 

Catalon designed the chemical recipe of the SCR catalytic converter, the manufacturing process, engineering and construction methodology to produce the SCR honeycomb catalyst. With the addition of ammonia upstream, the catalyst breaks down the NOx in the glue gas into nitrogen and water vapor. The honeycomb technology is designed for use in low temperature and mid temperature applications. Catalon, along with its honeycomb technology, was valued at approximately $20 million by an independent third party.