Solvay S.A. (Brussels, Belgium) announced the acquisition of the 20% minority stake of AGC in the Soda Ash JV operated in Green River, WY, building on its leadership position in trona-based soda ash production.
Solvay is a global leader in soda ash, with nine major soda ash and bicarbonate plants, of which six are located in Europe, two in the US and one in Asia. Solvay and AGC formed the Solvay Soda Ash Joint Venture (SSAJV) in 1992. The facility, operated by Solvay, produces soda ash and sodium bicarbonate from trona, a naturally occurring mineral to serve the glass, chemicals, detergents and food industries, among others.
“The acquisition of AGC’s stake in the JV simplifies our portfolio and is an attractive opportunity to enhance and further reinforce our business and a future independent EssentialCo,” said Philippe Kehren, President of Solvay’s Soda Ash & Derivatives business.“ Increasing our supply of trona-based soda ash is directly aligned with our sustainability ambitions to bring lower carbon-intensive soda ash to the market. In addition, our Green River operation is a world-class, cost-leading asset. Expanding our US trona-based capacities will support in a cost-effective manner our ability to meet growing demand in the Americas and in Asia, which is driven by megatrends including electrification, which uses soda ash to produce lithium carbonate used in EV batteries, and resource efficiency, where it’s used in flat glass for solar panels.”
At a cash purchase price of $120 million, this transaction will be significantly value accretive to Solvay, with a post taxcash return on capital in excess of 15%. The transaction is expected to be completed on May 4, 2022.