Register
Forgot your password?
Skip Navigation Links
ABOUT US
REQUEST RESIN
RESEARCH
SUPPORT CENTER
CONTACT US
Tronox to Sell Alkali Chemicals Business to Genesis Energy for USD 1.325bn in Cash
Aug 08, 2017 (M&A Navigator via COMTEX) -- (C)2017 M2 COMMUNICATIONS http://www.m2.com

8 August 2017 - US-based chemical company Tronox Ltd. (NYSE: TROX) has signed a definitive agreement to sell its Alkali Chemicals business to US-based midstream energy master limited partnership Genesis Energy, L.P. (NYSE: GEL) for USD 1.325bn in cash, the company said. The transaction is expected to close in the second half of 2017, subject to customary regulatory approvals and closing conditions. Alkali Chemicals is the world's largest producer of natural soda ash with its mining and processing facilities located in Green River, Wyoming. Its products are used in glass manufacturing, detergents, baked goods, animal nutrition supplements, pharmaceuticals, and other essential products. The sale of Alkali Chemicals is the next step in positioning Tronox as a leader in TiO2. The proceeds will be used to fund the majority portion of the cash consideration for the Cristal TiO2 acquisition, which is expected to close by 1Q18. As an integral part of this strategy, the company announced its intention to refinance a portion of its capital structure. Net debt leverage of approximately 4.5x trailing twelve months pro forma EBITDA before synergies is expected at the closing of the Cristal transaction. Tronox operates two vertically integrated mining and inorganic chemical businesses. Tronox TiO2 mines and processes titanium ore, zircon and other minerals, and manufactures titanium dioxide pigments that add brightness and durability to paints, plastics, paper, and other everyday products. Tronox Alkali mines trona ore and manufactures natural soda ash, sodium bicarbonate, caustic soda, and other compounds which are used in the production of glass, detergents, baked goods, animal nutrition supplements, pharmaceuticals, and other essential products. Credit Suisse is acting as financial advisor to Tronox for both the Cristal and Alkali transactions and Kirkland and Ellis LLP and Willkie Farr and Gallagher LLP are Tronox's legal advisors. Country: USA Sector: Chemicals Target: Tronox/Alkali Chemicals business Buyer: Genesis Energy Vendor: Tronox Ltd Deal size in USD: 1.325bn Type: Divestment Financing: Cash Status: Agreed Buyer advisor: , , Comment:


News Provided by COMTEX
Privacy Statement | Copyright © 2017 The Plastics Exchange. LLC. | Patent Protected | All Rights Reserved.