FMC Corp. To Sell Alkali Chemicals Business To Tronox For $1.64 Bln

(RTTNews) - FMC Corp. (FMC) said that it has signed a definitive agreement to sell its Alkali Chemicals business to Tronox Limited (TROX). 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.

The Alkali Chemicals business is the largest global producer of natural soda ash with its mining and processing facilities located in Green River, Wyo. Alkali Chemicals' products are used in glass manufacturing, water treatment, pulp and paper, textiles, food and pharmaceutical and cosmetics.

Tronox noted that the purchase price of $1.64 billion will be funded with approximately $1 billion of cash and approximately $600 million of new debt pursuant to signed commitments received from UBS Investment Bank, Credit Suisse and RBC Capital Markets.

The transaction is expected to be significantly accretive to Tronox's EBITDA, free cash flow and earnings upon closing. Tronox said it will fund the acquisition through existing cash and new debt pursuant to signed commitments from multiple banks.

The transaction, which has been approved by the boards of directors of both companies, is expected to close in the first quarter half of 2015 and is subject to customary closing conditions.

Tronox said it expect the deal to be more than $0.50 accretive to EPS in the twelve months following closing. It estimates that Alkali Chemicals would have contributed approximately $800 million of revenue for full year 2014.