Delta Carbonate, Inc. -The Development Of A New Calcium Carbonate Filler Producer

Calcium carbonate is one of the highest volume industrial mineral products in North America. It is used in filler and extender applications, roofing products, floor tile, glass manufacture, etc. Calcium carbonate has over a dozen major filler and extender applications plus a host of minor uses. North American consumption of calcium carbonate fillers and extenders in 1991 is estimated at over 5,000,000 tons valued in excess of $400,000,000. There were five major suppliers of calcium carbonate fillers in the Middle Atlantic region in 1988 :?Bestone, Genstar, National Gypsum, Thomasville Stone and Lime, and White Pigment. With the exception of Genstar's Maryland operation, all of these operations are within a few miles of York, Pennsylvania. The Millington Group (TMG) purchased the assets of Bestone Corporation in February of 1989. TMG then seized the opportunity to strengthen its business position by acquiring National Gypsum's and White Pigment's Pennsylvania filler businesses in December, 1989 and July, 1990, respectively. By July of 1990 TMG's filler business acquisitions included six quarries and one underground mine, totaling over 1,200 acres and three processing facilities. The assets were restructured into two new companies - Delta Carbonate, Inc. and Penroc, Inc. (hereafter collectively referred to as Delta). Delta identified the assets of the three predecessor companies as undervalued from the outset. The initial phase of Delta's turnaround strategy was to reassess the combined mineral. mining, processing, transportation and marketing assets. The second phase was to effectively integrate these resources in order to exploit their inherent synergy.