Elementis PLC Elementis announces sale of Surfactants business (0583Z)
December 12 2017 - 2:00AM
UK Regulatory
TIDMELM
RNS Number : 0583Z
Elementis PLC
12 December 2017
12 December 2017
Elementis plc announces sale of Surfactants business
for a cash consideration of EUR 39 million
Elementis plc ("Elementis", or the "Company") announces today
that it has entered into an agreement to sell its Surfactants
business located in Delden, The Netherlands to Kolb Distribution AG
("Kolb") for a cash consideration of EUR 39 million, subject to
working capital adjustments. Completion of the sale, which is
subject to completion of employee consultation processes, receipt
of regulatory clearances and other customary closing conditions, is
expected in the first half 2018. The proceeds resulting from the
sale will be used for general corporate purposes and towards debt
reduction.
As previously announced, after a strategic review the Company
decided that Surfactants did not fit with the Elementis Reignite
Growth strategy, due to a lack of scale and material capital
requirements, and a third party would be best positioned to develop
the business.
In addition to all of the Surfactants products, the Delden
facility also manufactures a limited range of products sold by the
Specialty Products segment. As part of this transaction Elementis
will enter into a long term supply agreement with Kolb for
continued sourcing of products which will modestly impact the
Specialty Products operating margin in 2018.
Paul Waterman, CEO of Elementis, said:
"After a competitive process, we are very pleased to have
reached an agreement to sell our Surfactants business to Kolb. This
action is consistent with our Reignite Growth strategy. By exiting
Surfactants we not only generate cash, but eliminate a
strategically disadvantaged business for us, simplify our supply
chain and are free to reallocate material capital and internal
resources to focus on higher margin growth opportunities.
I would like to thank our colleagues in the Delden facility for
their dedication, professionalism and service to our customers. I
am confident that the agreement with Kolb presents an exciting
opportunity for both companies and we look forward to working
together".
Enquiries
James Curran, Elementis Investor Relations Tel: 020 7067 2994
Martin Robinson, Tulchan Tel: 020 7353 4200
Note: The Surfactants business comprises the Delden
manufacturing facility in the Netherlands and includes 100 per cent
of the shares in Elementis Specialties Netherlands BV. As at 31
December 2016, Elementis Specialties Netherlands BV generated
profits before tax of EUR 9 million and as at 30 June 2017 had
gross assets of EUR 70 million.
Kolb Distribution AG is a wholly-owned subsidiary of Kuala
Lumpur Kepong Berhad, a company listed on the Main Market of Bursa
Malaysia Securities Berhad with a market capitalisation of
approximately $ 6.3 billion at the end of June 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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