FMC Corp. plans to sell its Alkali Chemicals business to Tronox Ltd. The transaction, valued at $1.64 billion, is expected to close in the first quarter of 2015, subject to customary regulatory approvals and closing conditions.
In September 2014, FMC announced it was acquiring multinational agrochemical maker Cheminova A/S and would pursue a divestiture of the Alkali Chemicals business to reduce debt related to the company’s pending acquisition.
The Alkali Chemicals business is the largest global producer of natural soda ash with its mining and processing facilities located in Green River, Wyoming. “This is a natural fit for Alkali Chemicals, which will thrive as a new, strategic business at Tronox,” said Pierre Brondeau, president, CEO and chairman of FMC. The products are used in glass manufacturing, water treatment, pulp and paper, textiles, food and pharmaceutical and cosmetics.
“With its industry-leading position in markets complementary to ours, the Alkali Chemicals Group brings consistently strong operational and financial performance,” said Tom Casey, chairman and CEO of Tronox. “They are a recognized leader in their industry for safety performance. Together, we will form a leading inorganic chemicals company with approximately $2.6 billion in sales with the scale, stability and financial strength to continue to pursue our strategic growth initiatives.”
Tronox is a leader in the production and marketing of mineral sands, titanium dioxide pigment and electrolytic products. Through the integration of its pigment and mineral sands businesses, the company provides its customers a dependable supply of brightening solutions for a variety of end uses.