Elementis said the transaction will strengthen its balance sheet. As the book value of the asset was $100 million at the end of 2021, the company has achieved a substantial gain on disposal and plans to use the cash proceeds to reduce debt.

Headquartered in Istanbul, Yildrim is one of the fastest-growing Turkish industrial conglomerates. The family holding touts itself as the country’s leading producer of calcium ammonium nitrate (CAN) fertilizer and ammonia and its third-largest trader of fertilizers and chemicals.

Yildirim also owns Gemlik Gubre, another major Turkish fertilizer producer and is currently in the process of taking over fertilizer producer Rosier from Austrian polyolefins major Borealis.

Following the chromium divestment, CEO Paul Waterman said Elementis will be a fully focused global speciality chemicals business trimmed down to three divisions united by their focus on premium products made from differentiated resources.

Personal Care focuses on products that help make skin creams smooth, nail polish glow and antiperspirants work, as the company describes it, while the Coatings division manufactures specialty additives that extend the life of industrial coatings and render decorative paints more stain resistant as well as enabling sealants to be applied evenly.

Talc, Elementis’ talc based additives line, helps make plastics stronger and lighter, while contributing to making food packaging recyclable. The talc products are used in a range of applications such as technical ceramics.

Looking at business results for fiscal 2022, Waterman said the three businesses that will remain with the company and boast a strong pipeline of new, distinctive, high-value products drove revenue growth and margin expansion, delivering organic sales growth of 14%, adjusted operating profit of $125 million and an adjusted operating margin of 17% (excluding corporate costs).  

As a global speciality chemicals business focused on differentiated assets, product innovation, clear growth opportunities and strong cash generation, the CEO said he is confident that the company's strategy positions it to achieve its medium-term financial objectives and generate significant value for shareholders.

Author: Dede Williams, Freelance Journalist