Elementis sells its US colourants business to Chromaflo
Elementis has reached an agreement to sell its US colourants business to Chromaflo Technologies for an undisclosed cash consideration.
The transaction is not subject to any regulatory approval and closed simultaneously on signing on March 17, 2017.
Closure of the Jersey City production facility
Following a review of Elementis' operating assets and product portfolio, it was decided that the colourants business was non-core and that the optimal course of action was divestment of the business and subsequent closure of the Jersey City production facility in New Jersey, US, where the products for that business are produced.
Commenting on the transaction CEO, Paul Waterman, said:
“We said at the Capital Markets day in November 2016 that we would focus on fewer, more material opportunities to reignite growth at Elementis. The sale of our non-core US colourants business and closure of the Jersey City site demonstrates that supports our strategy to focus on key growth areas. It also represents an important step in our supply chain transformation. The Jersey City site will now undergo preparation for closure and we expect it will be put up for sale in the future.”
Line of colourant products fit well
“The acquisition of these products from Elementis Specialties is consistent with our efforts in supplying quality colourants and additives for high performance industrial coatings and architectural paints in the Americas’ markets and beyond,” said Scott Becker, President and CEO of Chromaflo Technologies. “The 'Tint-Ayd' line of colourant products and 'Dapro' driers fit well with our existing lines, increasing customers’ options in support of these industries.”
