PRODUCER NEWS - Oglebay Norton to acquire Michigan Limestone Operations

Pit & Quarry, Jan, 2000

Oglebay Norton Co. says it has reached an agreement to acquire Michigan Limestone Operations Limited Partnership (MLO). The transaction, which is subject to regulatory approvals and due diligence, is expected to close in April 2000. Terms were not disclosed.

MLO operates two quarry operations, one in Rogers City, Mich., and the other in Cedarville, Mich. These operations supply high calcium and dolomitic limestone to a wide variety of users including the construction, energy and steel industries.

Oglebay Norton Co. owns nine limestone operations in six states through its wholly owned subsidiary, Global Stone Corp., including one limestone operation, Global Stone Port Inland Inc., which is located on the Upper Peninsula of Michigan.

John N. Lauer, chairman, president and CEO of Oglebay, says, "`Michigan Limestone Operations fits well with our Port Inland and Marine Services operations. As we close a strong fourth quarter and 1999, MLO adds yet another platform from which we can grow our earnings per share in 2000."

He continues, "After closing, we expect business as usual for our employees and customers. Our plan is to have Michael Lundin, the current MLO president, join Oglebay Norton Co. as president, Michigan Limestone, reporting to me."

Also, Oglebay Norton Co. has created a wholly owned subsidiary, Oglebay Norton Specialty Minerals Inc. The new entity will include the newly acquired mica business and will be the vehicle through which the company intends to expand its specialty minerals offerings. The new entity and expansion efforts into other specialty minerals will be lead by Kenneth P. Pavlich, who has been elected president of Oglebay Norton Specialty Minerals and vice president of Oglebay Norton Co.

Pavlich joined Oglebay Norton in December 1997 as vice president of operations for the company's industrial sands unit. In 1998, his duties shifted to corporate development activities, having responsibilities for the analysis of new opportunities as well as the integration of completed transactions.

Pavlich says, "I am very excited about the creation of this new division. It provides Oglebay with the technical, marketing and sales platform from which we can execute our aggressive specialty minerals growth strategy." Pavlich says, "The fact that we have been able to retain all of the operational, marketing, R&D and sales personnel of the former Franklin Mica Division means that there should be no disruption to our current customers, and we can begin our efforts to expand the business immediately."