Elementis plc has entered into an agreement to sell its surfactants business located in Delden, The Netherlands, to Kolb Distribution AG for a cash consideration of EUR 39 million, subject to working capital adjustments.
Completion of the sale, which is subject to completion of employee consultation processes, receipt of regulatory clearances and other customary closing conditions, is expected in the first half 2018.
As part of this transaction Elementis will enter into a long term supply agreement with Kolb for continued sourcing of products.
Paul Waterman, CEO of Elementis, said: "After a competitive process, we are very pleased to have reached an agreement to sell our surfactants business to Kolb. This action is consistent with our Reignite Growth strategy. By exiting surfactants we not only generate cash, but eliminate a strategically disadvantaged business for us, simplify our supply chain and are free to reallocate material capital and internal resources to focus on higher margin growth opportunities.
I would like to thank our colleagues in the Delden facility for their dedication, professionalism and service to our customers. I am confident that the agreement with Kolb presents an exciting opportunity for both companies and we look forward to working together.”
