Elementis plc (London) has simultaneously signed and completed the sale of its Talc business to IMI Fabi S.p.A, a global talc manufacturer, for an enterprise value of $121 million, with net cash proceeds after transaction costs in the region of $55 million (the “Transaction”).
The transaction follows the strategic review of the Talc business (announced in August 2024) to evaluate whether the full potential of Talc could best be delivered as part of Elementis, or via a divestment. The Board of Elementis believes that the sale to IMI Fabi represents the best outcome for all stakeholders. As a result of the Transaction, all sites, employees, assets, and liabilities of Talc will move under IMI Fabi’s ownership and, following a short transitional period, will trade under Mondo Minerals as well as its other affiliated IMI Fabi brands.
The sale represents a key milestone in Elementis’ repositioning as a pure-play specialty chemicals leader with a high-quality portfolio that is focused on value-added specialty additives in the high-margin Coatings and Personal Care markets. The disposal improves the Group’s adjusted operating profit margin by approximately 240 basis points, based on the Group’s reported financial results for the year ended 31 December 2024. The Transaction also accelerates the delivery of the Group’s 2026 financial targets. The Group’s future strategic priorities and performance objectives under new CEO, Luc van Ravenstein, appointed on 29 April 2025, will be communicated in due course.
In recognition of Elementis’ robust balance sheet and the strong confidence in the streamlined Group’s prospects, the Board is pleased to announce its intention to return $50 million to shareholders by way of a share buyback programme, which is expected to commence as soon as practicable. The Group’s progressive dividend policy remains unchanged as a result of the Transaction.
The Group’s positive outlook for this financial year remains unchanged from that set out in our Q1 trading update on 29 April 2025.
Luc van Ravenstein, CEO of Elementis, commented: “The Board of Elementis conducted an extensive review of the Group’s strategic options and concluded that the full potential of Talc would be best delivered via a sale of the business. We are confident that the combination with IMI Fabi represents the right outcome for the business and best serves the long-term interests of its customers and employees. I would like to take this opportunity to thank all of our Talc colleagues for their dedication, professionalism, and service to our customers under Elementis’ ownership. The Transaction marks a new chapter in the Group’s transformation into a pure-play specialty chemicals leader enabling us to focus on and grow our Coatings and Personal Care businesses where we see the greatest potential for profitable, cash-generative growth.”