Tronox to sell Alkali Chemicals business for $1.325bn
US-based Tronox has signed a definitive agreement to divest its Alkali Chemicals business to Genesis Energy for $1.325bn.
With its mining and processing facilities located in Green River at Wyoming, Alkali Chemicals focuses on producing natural soda ash that is used in multiple sectors such as glass manufacturing, detergents, baked goods and pharmaceuticals.
Tronox CEO Peter Johnston said: “We were pleased to have received significant interest in our Alkali business from multiple potential buyers.
“Genesis' proposal was the most compelling for its overall value, with its combination of price, favourable contract terms, speed to closing, committed financing, and expected ease of regulatory approvals.
“These considerations, in aggregate, provided the highest level of certainty to Tronox.”
In February, Tronox signed a definitive agreement to acquire the TiO2 business of Cristal for $1.673bn.
The company plans to use the proceeds received from the sale of Alkali Chemicals in funding TiO2 acquisition, which is expected to close in the first quarter of next year.
After the completion of the Alkali Chemicals divestment, Tronox will focus on TiO2 business.
The company is also planning to refinance a portion of its capital structure to lower its overall cost of debt.
The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of this year.
In both the transactions, Credit Suisse is acting as financial adviser to Tronox, while Kirkland & Ellis and Willkie Farr & Gallagher are providing legal assistance to the company.
Image: Green River, Wyoming, USA surface plant. Photo: courtesy of Tronox.