Elementis to sell Dutch surfactants business
Elementis has signed an agreement to sell its Dutch Surfactants business to Kolb Distribution in a €39m deal.
The business comprises the Delden manufacturing facility in the Netherlands and includes 100% of the shares in Elementis Specialties Netherlands.
Elementis plans to use proceeds from the sale for general corporate purposes and towards debt reduction.
The decision to sell the surfactants business follows a strategic review carried out by the company.
As a result of review, the company found that surfactants did not fit with the Elementis Reignite Growth strategy due to a lack of scale, as well as material capital requirements.
Alongside manufacturing all types of the Surfactants products, the Delden plant produces a limited number of products sold by the Specialty Products segment.
As part of the deal, Elementis will sign a long-term supply agreement with Kolb for continued sourcing of products.
ElementisCEO Paul Waterman 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.”
The transaction is scheduled to be completed in the first half of next year, subject to approval from the concerned regulators and other customary closing conditions, as well as the completion of an employee consultation processes.