Elementis Plc · LSE:ELM
Elementis — Merger or Acquisition (November 2022)
6 slides from Elementis's merger presentation, Nov 30, 2022
Slide 1: Sale of Chromium business
Sale of Chromium business 30 NOVEMBER 2022 Enhanced Performance Through Applied Innovation
Slide 2: Cautionary statement
Cautionary statement This presentation, the presentation materials and discussion may contain certain forecasts, projections and forward looking statements – that is, statements related to future, not past events – in relation to, or in respect of the financial condition, operations or businesses of
Slide 3: Transaction overview
Transaction overview • Strategic review of Chromium business launched in April 2022 • Culminated in agreement to sell business to Yildirim Group • Enterprise Value of $170m • 7.3 x EBITDA • Transaction subject to US Regulatory approval, • expected before end of Q1 2023 • Completes our transition to
Slide 4: Transaction details
Transaction details Transaction details: $m Enterprise Value 170 7.3x EBITDA (12 months to 30 June 2022) Environmental Liabilities transferred (35) Other Liabilities transferred (8) Equity Value 127 Transaction Costs (8) Net Cash Proceeds 119 Subject to customary Working Capital & other closing adju
Slide 5: Transaction impact
Transaction impact • Proceeds to be used to reduce Net Debt, in line with Capital Allocation priorities • Expected impact of sale of Chromium Full Year 2021 LTM to 30 June 2022 $m Actual Chromium Pro-Forma* Actual Chromium Pro-Forma* Sales 880 171 709 906 171 735 Adj. Operating Profit 107** 14*** 93
Slide 6: Elementis future
Elementis future Transaction completes transition to pure Specialty Chemicals company • Higher quality earnings & margins, lower volatility • Strongly cash generative • Lower leverage • Enhanced sustainability profile Implementing a consistent, focused strategy : Innovation + Growth + Efficiency • B