27th May 2025 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the EU Market Abuse Regulation (EU) No.596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via a regulatory information service, this inside information is now considered to be in the public domain.
27 May 2025
Elementis plc
Sale of Talc and intended launch of share buyback programme
Elementis plc ("Elementis" or the "Group"), a global specialty chemicals company, today announces that it has simultaneously signed and completed the sale of its Talc business to IMI Fabi S.p.A ("IMI Fabi"), a global talc manufacturer, for an enterprise value of $121m1, with net cash proceeds after transaction costs in the region of $55m1 (the "Transaction").
The Transaction follows the strategic review of the Talc business (announced in August 2024) to evaluate whether the full potential of Talc could best be delivered as part of Elementis, or via a divestment. The Board of Elementis believes that the sale to IMI Fabi represents the best outcome for all stakeholders. As a result of the Transaction, all sites, employees, assets and liabilities of Talc will move under IMI Fabi's ownership and, following a short transitional period, will trade under Mondo Minerals as well as its other affiliated IMI Fabi brands.
The sale represents a key milestone in Elementis' repositioning as a pure-play specialty chemicals leader with a high-quality portfolio that is focused on value-added specialty additives in the high-margin Coatings and Personal Care markets.
The disposal improves the Group's adjusted operating profit margin by approximately 240 bps2, based on the Group's reported financial results for the year ended 31 December 2024. The Transaction also accelerates the delivery of the Group's 2026 financial targets3. The Group's future strategic priorities and performance objectives under new CEO, Luc van Ravenstein, appointed on 29 April 2025, will be communicated in due course.
In recognition of Elementis' robust balance sheet and the strong confidence in the streamlined Group's prospects, the Board is pleased to announce its intention to return $50m to shareholders by way of a share buyback programme which is expected to commence as soon as practicable. The Group's progressive dividend policy remains unchanged as a result of the Transaction.
Outlook
The Group's positive outlook for this financial year remains unchanged from that set out in our Q1 trading update on 29 April 2025.
Luc van Ravenstein, CEO of Elementis commented:
"The Board of Elementis conducted an extensive review of the Group's strategic options and concluded that the full potential of Talc would be best delivered via a sale of the business.
We are confident that the combination with IMI Fabi represents the right outcome for the business and best serves the long-term interests of its customers and employees. I would like to take this opportunity to thank all of our Talc colleagues for their dedication, professionalism and service to our customers under Elementis' ownership.
The Transaction marks a new chapter in the Group's transformation into a pure-play specialty chemicals leader enabling us to focus on and grow our Coatings and Personal Care businesses where we see the greatest potential for profitable, cash-generative growth."
Webcast and conference call details
A virtual presentation for investors and analysts will be held at 09:00 BST on Tuesday 27 May via a live webcast and can be accessed via the details below:
A copy of the presentation will be available for download from 07:00 BST this morning at Results, Reports and Presentations | Elementis Global
Webcast link: https://www.investis-live.com/elementis/6827597a800d38000f88721b/kavel
Conference call dial-in:
United Kingdom (Local): +44 20 3936 2999 United Kingdom (Toll-Free): +44 808 189 0158
Global Dial-In Numbers
Access Code: 392370
Enquiries
Elementis plc
Zeeshan Maqbool, Head of Investor Relations Tel: 07553 340 380
Rothschild & Co
Ravi Gupta / Nathalie Ferretti Tel: 020 7280 5000
Teneo
Martin Robinson / Giles Kernick Tel: 020 7260 2700
The personal responsible for the release of this announcement on behalf of Elementis is Lynton Boardman, Company Secretary.
Notes
1. Enterprise value €107m, net cash proceeds after transaction costs in the region of €48m. Converted at exchange rate of €1 = $1.1379.
2. Includes $1m of stranded costs.
3. 2026 targets as set out in November 2023 CMD: 19%+ adjusted operating profit margin, over 90% operating cash conversion, and over 20% return on capital employed (excluding goodwill).
About Elementis
Elementis is a global specialty chemicals company. We offer performance-driven additives that help create innovative formulations for consumer and industrial applications. As a FTSE 250 company, listed on the London Stock Exchange, we employ c.1,030 people globally. We have a nearly 200-year tradition of creating ingredients that add value to everyday consumer and industrial products. In 2024 Elementis reported revenue of $738m and adjusted operating profit of $129m.
About Talc
Talc is a mine-to-market integrated producer and supplier of premium talc, with focus on industrial talc additives which add critical performance features to end products.
About IMI Fabi
IMI Fabi is a global talc manufacturer that was established in the 1950s in Valmalenco (SO) Italy. IMI Fabi's operating network produces and distributes high quality talc products for customers in the plastic, paper, paints and fillers, animal feed, building coatings, ceramics, pharmaceuticals and other industries. The company's success stems from its commitment to sustainable value creation, its strategic investment policy and its culture of providing innovative industrial solutions for its customers.
Important notice
N.M. Rothschild & Sons Limited ("Rothschild & Co"), which is authorised and regulated in the UK by the Financial Conduct Authority, is acting exclusively as financial adviser to Elementis and for no‑one else in connection with the sale which is the subject of this announcement and shall not be responsible to anyone other than Elementis for providing the protections afforded to clients of Rothschild & Co, nor for providing advice in connection with the announcement or any matter referred to herein. Neither Rothschild & Co nor any of its affiliates (nor their respective directors, officers, employees or agents) owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Rothschild & Co in connection with this announcement or any statement contained herein. No representation or warranty, express or implied, is made by Rothschild & Co as to the contents of this announcement.
Allen Overy Shearman Sterling LLP is acting as legal adviser to Elementis in connection with the sale of its Talc business.
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