Elementis sells Global Pigments for $140 mln
Fri May 11, 2007 2:40am ET
LONDON, May 11 (Reuters) - Britain's Elementis Plc, the world's biggest producer of chromium chemicals, said on Friday it had agreed to sell its Global Pigments business to Rockwood Specialties Group for $140 million in cash.
Elementis, which carried out a strategic review last year to boost earnings, said the sale of the synthetic iron oxides producing business was in line with its aim of focusing on speciality businesses.
"Net proceeds from the sale will initially be used to reduce net borrowings, but the board is reviewing other potential uses and will provide an update before completion," it said in a statement.
It expects to record a pretax gain of 20 million pounds ($39.9 million) and said the transaction, due for completion before the end of 2007, would have no material impact on the group's earnings before exceptional items.
Pigments reported 6.1 million pounds in operating profit before exceptionals on sales of 94.2 million in 2006.
Shares in Elementis closed at 81-1/2 pence on Thursday, valuing the business at around 361 million pounds.
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