Tronox completes sale of Alkali Chemicals for $1.325bn
Updated: September 05, 2017 01:51PM UTC
Date: Tuesday, September 05, 2017
Tronox has completed the sale of its Alkali Chemicals business to US-based Genesis Energy in a deal worth $1.325bn.
The purchase price is inclusive of $106m of non-cash net working capital.
Natural soda ash producer Alkali Chemicals has its mining and processing facilities in Green River, Wyoming.
The company’s products find applications in glass manufacturing, detergents, baked goods, animal nutrition supplements, pharmaceuticals, and other essential products.
Tronox CEO Peter Johnston said: "The sale of Alkali Chemicals is an important step in positioning Tronox as the global leader in the titanium dioxide (TiO2) industry.
“The proceeds will be used to fund the majority portion of the cash consideration for the acquisition of the TiO2 assets of Cristal, which is expected to close by the first quarter of 2018."
When the acquisition was announced last month, Tronox noted its intent to refinance a portion of its capital structure in a bid to reduce its overall cost of debt while extending the portfolio's weighted average years to maturity.
The combination of Tronox's and Cristal's TiO2 businesses is expected to generate substantial additional free cash-flow.
Tronox said that Credit Suisse is acting as financial advisor, with regard to both the Cristal and Alkali transactions, while Kirkland & Ellis and Willkie Farr & Gallagher are its legal advisors.