US-based Tronox has signed a definitive agreement to divest its Alkali Chemicals business to Genesis Energy for $1.325bn.
With its mining and process facilities situated in Green River at wyoming, Alkali Chemicals focuses on manufacturing natural soda ash that’s utilized in multiple sectors like glass producing, detergents, baked items and pharma drugs.
Tronox chief executive officer Peter Johnston said: “We were happy to own received important interest in our Alkali business from multiple potential consumers.
“Genesis’ proposal was the foremost compelling for its overall price, with its combination of worth, favourable contract terms, speed to closing, committed funding, and expected simple regulative approvals.
“These concerns, in combination, provided the best level of certainty to Tronox.”
In Feb, Tronox signed a definitive agreement to accumulate the TiO2 business of cristal which is worth for $1.673bn.
The company plans to use the return received from the sale of Alkali Chemicals in funding TiO2 acquisition, that is predicted to shut within the first-half of next year.
“We were happy to own received important interest in our Alkali business from multiple potential consumers.”
After the completion of the Alkali Chemicals divestment, Tronox can concentrate on TiO2 business.
The company is additionally progressing to finance some of its capital structure to lower its overall value of debt.
The dealings is subject to customary regulative approvals and shutting conditions and is predicted to shut within the second-half of this year.
In each of the transactions, Credit suisse is acting as monetary consultant to Tronox, whereas Kirkland & Ellis and Willkie Farr & Gallagher are providing legal help to the corporate.