Elementis plc (London) has completed the sale of its pharmaceutical manufacturing business to Associated British Foods (ABF). Under the terms of the Transaction, the business was sold for an enterprise value of €34.3 million (equivalent to around $39.8 million), with net cash proceeds after transaction costs of approximately €30 million.
The Transaction supports the Group’s strategic objectives, repositioning Elementis as a pure-play specialty chemicals leader focused on value-added specialty additives in the Personal Care and Coatings markets. The Transaction improves adjusted operating margin2 for both the Group and the Personal Care division, and will reduce future capital intensity. In recognition of Elementis’s robust balance sheet, strong first quarter performance and unchanged outlook for the year, as set out in the trading update on 29 April 2026, the Board is pleased to announce that it will be returning the c.$35m net cash proceeds from the Transaction to shareholders by way of a share buyback program. This is expected to commence as soon as practicable.
Luc van Ravenstein, CEO of Elementis, said: “We are pleased to have completed the sale of the pharmaceutical manufacturing business. The Transaction further strengthens the quality of our portfolio and sharpens our focus on our core markets. We are excited about the opportunities ahead and the positive momentum behind our Elevate Elementis strategy. ABF is the right home for the business, providing a global pharmaceutical platform and established customer relationships to support its continued growth. I would like to thank our colleagues from the pharmaceutical manufacturing business for their contribution to Elementis and wish them all the best for the future.”