Company Announcements

Sale of Chromium business

Source: RNS
RNS Number : 0013I
Elementis PLC
30 November 2022

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the EU Market Abuse Regulation (EU) No.596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via a regulatory information service, this inside information is now considered to be in the public domain.

London, 30 November, 2022.

Elementis plc

Sale of Chromium business

Elementis plc ("Elementis" or the "Group"), a global specialty chemicals company, today announces that it has agreed to sell its Chromium business to Yildirim Group for an enterprise value of US$170m.  The transaction includes the transfer of environmental liabilities of $35m and other liabilities of $8m, with the total cash proceeds on completion expected to be around $119m before tax, after all transaction costs and subject to customary closing working capital adjustments. The transaction is subject to US regulatory approval, which is expected before the end of Q1 2023. 

The sale follows the strategic review of the Chromium business announced in April 2022. In the twelve months to 30 June 2022, the Chromium business reported Sales of $171m and Adjusted Operating Profit of $14m (including $7m of Group costs allocated to Chromium). The transaction values the Chromium business at 7.3 times EBITDA (12-months to 30 June 2022).  The transaction will result in a gain on disposal, and a tax charge of approximately $12m. The majority of the Group costs previously allocated to Chromium are expected to be phased out by the end of 2023.

Following the sale of the Chromium business, Elementis will continue to implement its strategy built on innovation, growth and efficiency, with a portfolio now fully focused on premium specialty products. In the twelve months to 30 June 2022 this portfolio delivered underlying sales growth of 14%, adjusted operating profit of $125m, and an adjusted operating margin of 17.0% (excluding corporate costs). 

The cash proceeds from the sale will be used to reduce the Group's Net Debt, in line with the capital allocation priorities. Group Net Debt at 30 June 2022 was $393m, representing 2.4x EBITDA (excluding the impact of IFRS16), and pro-forma Net Debt/EBITDA (after reflecting the Chromium transaction) was 2.0x, closer to the Group's medium-term target of 1.5x.  

Paul Waterman, CEO of Elementis commented:

"Whilst Chromium has been a part of Elementis for many years, our strategic review concluded that the interests of all stakeholders would now be best served by a sale of the business.  Our Personal Care, Coatings and Talc businesses are focused on developing advantaged, high-value products to drive revenue growth and margin expansion.   Going forward, I'm confident the focused implementation of our Innovation, Growth & Efficiency strategy positions us to deliver on our medium-term financial objectives and generate significant shareholder value.

Chromium is an attractive business with a strong market position, but it increasingly sat outside of this  strategic framework. We are confident that Yildirim will take the business forward in the best long-term interests of its customers and employees."



A virtual presentation for investors and analysts will be held at 14.00 GMT on 30 November  2022.  The presentation will be web-cast on and a copy of this announcement can also be found on this website. 

Webcast link:

Conference call dial-in details :

UK: 020 3936 2999           

USA: 1 646 664 1960       

All other Locations: +44 20 3936 2999

Access Code: 939292


Elementis plc

David Boyd, Investor Relations                                                  Tel: +44 7764 905135


Juliana Noronha, Corporate Communications                     Tel: +44 7384 866389            



Martin Robinson, Olivia Peters                                                   Tel: 020 7353 4200

Olivia Peters





About Elementis

Elementis is a global specialty chemical company, with 1,400 employees operating at 22 manufacturing sites across the globe. Elementis works with its customers to solve their product performance and sustainability challenges, developing and delivering solutions that make customer's products easier to manufacture and perform better.  

Combining its leading positions in the science of materials flow, surface modification, and formulation with its access to unique natural materials and its global footprint, Elementis delivers Enhanced Performance Through Applied Innovation to customers in a wide range of markets, including cosmetics, anti-perspirants, decorative and industrial coatings, automotive and ceramics.  In 2021 Elementis reported revenue of $880m and adjusted operating profit of $107m.   

About Yildirim Group

Yildirim Group is a leading Dutch-Turkish industrial group headquartered in Istanbul and Amsterdam, focusing on metals and mining, port management, fertilizers and chemicals, green energy, shipping and logistics, construction and infrastructure, and private equity financing. Yildirim has more than 20,000 employees in 55 countries on 5 continents.

Yildirim Group's metals and mining business is a major producer of chrome ore and high-carbon ferrochrome. Yildirim owns and operates chrome mines, ferrochrome and various ferroalloy production plants in Turkey, Sweden, Kazakhstan, Russia, Albania, and Kosovo.

About the Chromium business

The Chromium business operates from five manufacturing sites in the United States and employs approximately 240 people. The largest site is at Castle Hayne in North Carolina which produces Sodium Dichromate and Chromic Acid.  These products are then transported to the four other sites, one of which produces Chrome Oxide and the other three Chrome Sulfate.

Elementis is the only Chromium producer in the Americas, with a leading market share in the North Americas region, which represents the majority of sales. Chromium products provide strength and prevent corrosion and are used primarily in the metal plating, timber treatment, coatings, leather tanning and other industries.  Elementis has developed a unique system of product delivery to customers via railcar or truck, which is significantly safer than traditional transportation methods.

Chromium production is an energy intensive business, with the Chromium business accounting for 73% of the Group's greenhouse gas emissions in 2021. Gross assets of the Chromium business at the end of 2021 were $153.2 million.

Eaglescliffe site (UK)

This transaction excludes the remaining assets and liabilities of the UK Chromium business which ceased operations in 2009.  This comprises the 480 acre Eaglescliffe site in County Durham, for which the Group has provisions of $29m, based on analysis provided by specialist site remediation companies. Other commercial opportunities for the Eaglescliffe site are currently being explored.


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