Elementis Pays $600 Million for Mondo Minerals
UK specialty chemicals company Elementis is to buy Dutch talc additives producer Mondo Minerals from US private equity firm Advent International for $600 million. Advent bought Mondo in 2011 from UK private equity company Hg.
Mondo owns talc mines in Sotkamo and Vuonos in central Finland, where it also operates manufacturing plants, as well as factories in Amsterdam and Katwijk in the Netherlands, employing around 230 people in total. The company supplies talc additives to a variety of industries, including coatings and plastics. In 2017, it generated revenues of €122 million and EBITDA of €31 million.
Paul Waterman, CEO of Elementis, commented: “This is a very compelling opportunity for Elementis and an exciting step in the development of the business. Mondo is an excellent fit and we see significant opportunities to apply Elementis' global knowledge, scale and relationships to unlock additional value and further growth.”
The acquisition, which remains conditional upon the approval of Elementis’ shareholders, will be funded by a rights issue that is expected to raise about $280 million, along with new debt facilities of $775 million. Completion of the deal and the rights issue is anticipated by the end of the third quarter.
Elementis said the cash-and-debt-free deal should be immediately accretive to margins and earnings in the first full years of ownership.
Last year, the London-headquartered group agreed to buy US specialty chemicals company SummitReheis for $360 million from an affiliate of private equity firm One Rock Capital Partners.