Document a1wVNE7YeKd7qe3R17JzMyq8X

H----j# < ` > 1 h 4 1 I : PLAINTIFF'S * EXHIBIT \WEGt314 ACD 130 E REQUEST FOR CAPITAL APPROPRIATION Originating Unit DEWEY AND ALMY CHEMICAL DIVISION- RCA Title of Project ACQUISITION OP ZONOLITE COMPANY - Amount Budgeted for Equity Investment $ None Amount to be Authorized Tor"EqUity Investment ~ $9,625,non Total Capital Employed $ 8.7$0.000 Return on Total Capital Employed. Grace Equity (100**) Ret of Borrowings $ o750000 Payout of Total Capital Employed Projected Zonolite Earnings per Grace Acquisition Share 1963 $2.76 196li. $3*12 196$ $3UU 1966 $3.61j. 7-9* 7.$ Yra Description, Justification, and Financing: This RCA provides for the acquisition of the assets and business of the Zonolite Company, a.Montane^cor-ponatlnn,-organized-___ In 1922, whose over-the-counter stock is owned by about 3,500 stockholders. Zonolite is one of the free world's leading producers of vermlcullte, a mica-type mineral which expands when - heated. The principal current use of expanded vermlcullte Is in the construction industry as thermal and acoustical Insulation and as an aggregate for lightweight ln'sulatlve concrete. The one large commercial deposit of vermlcullte In the western hemis phere la In northwestern Montana and la Zonolite owned. The other significant western hemisphere commercial deposits are In scattered small mines in the northwestern part of South Carolina and are largely Zonolite owned. The acquisition Is to be effected by the issuance of one share of V. R. Grace & Co. common stock for each four Zonolite a common shares outstanding. It will require issuance of 275,000 * Grace shares at dosing (presently planned for Jan. 31, 1963) based on the 1,100,000 shares of Zonolite stock estimated to be outstanding at that time. The acquisition agreement Is subject to the approval of the Boards of Directors of Grace and Zonolite and of the Zonolite stockholders for which a meeting is planned around January 10, 1963. Diadglon Manager, Date APPROVALS ACD Date ME/ Aaat. Treasurer Executive Ice....P...r..e..s..ident Group Executive ~[%Ace1 President hho/ Pre ldent^^T?^dtf.///iz/cy' 7 Board of Directors 1y!l /iv fs&nk fjten - ehve