REG - Elementis PLC - Sale of Pharma business & intended buyback launch

ElementisAnnouncement

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RNS Number : 5432G  Elementis PLC  02 June 2026

2 June 2026

 

Elementis plc

 

Completion of sale of pharmaceutical manufacturing business

Launch of c.$35m share buyback programme

 

Elementis plc ("Elementis" or the "Group"), a global specialty chemicals
company, announces that, further to the announcement on 5 March 2026, it has
completed the sale of its pharmaceutical manufacturing business to Associated
British Foods ("ABF") (the "Transaction").

Under the terms of the Transaction, the business was sold for an enterprise
value of €34.3m (equivalent to c.$39.8m(1)), with net cash proceeds after
transaction costs of approximately €30m (equivalent to c.$35m(1)).

The Transaction supports the Group's strategic objectives, repositioning
Elementis as a pure-play specialty chemicals leader focused on value-added
specialty additives in the Personal Care and Coatings markets. The Transaction
improves adjusted operating margin(2) for both the Group and the Personal Care
division, and will reduce future capital intensity.

In recognition of Elementis's robust balance sheet, strong first quarter
performance and unchanged outlook for the year, as set out in the trading
update on 29 April 2026, the Board is pleased to announce that it will be
returning the c.$35m net cash proceeds from the Transaction to shareholders by
way of a share buyback programme. This is expected to commence as soon as
practicable.

 

Luc van Ravenstein, CEO of Elementis, said:

 

"We are pleased to have completed the sale of the pharmaceutical manufacturing
business. The Transaction further strengthens the quality of our portfolio and
sharpens our focus on our core markets. We are excited about the opportunities
ahead and the positive momentum behind our Elevate Elementis strategy.

ABF is the right home for the business, providing a global pharmaceutical
platform and established customer relationships to support its continued
growth. I would like to thank our colleagues from the pharmaceutical
manufacturing business for their contribution to Elementis and wish them all
the best for the future."

 

 

Enquiries

 Investors:  Zeeshan Maqbool, Elementis plc           Tel: +44 (0) 7553 340 380
 Press:       Martin Robinson, Giles Kernick, Teneo   Tel: +44 (0) 20 7353 4200

 

 

Notes

 

 1.          Converted at the exchange rate of €1 = $1.1630.
 2.          Group and Personal Care adjusted operating margin will improve by 56 bps and
             374 bps respectively, based on the Group's reported financial results for the
             year ended 31 December 2025, with  pro-forma Group revenue of $562.4m, Group
             adjusted operating profit of $122.4m, Personal Care revenue of $189.4m and
             adjusted operating profit of $68.5m.

 

About Elementis

Elementis is a global specialty chemicals company listed on the London Stock
Exchange. The Group employs c.1,000 across 18 global locations. As recognised
innovation leaders with deep expertise in rheology (the science of flow), and
formulation solutions, we develop distinctive solutions and products to
improve performance, achieve smoother production, and enhance sustainability
credentials for customers across a range of industries. The Group also owns
and operates one of the largest known commercial high-quality hectorite mines
in the world. Hectorite is a special, high-purity clay mineral rich in
magnesium and lithium, known for its ability to control viscosity, stabilise
formulations, and deliver smooth, consistent textures that make it ideal for
clean-label, high-performance formulations.

Elementis is composed of two focused, high-margin businesses: Personal Care
and Coatings. The Personal Care business manufactures natural and synthetic
rheology modifiers to deliver premium product performance for personal care
applications in skin care and cosmetics, as well as active ingredients for
antiperspirants. Within Coatings, Elementis develops and manufactures
rheology modifiers and premium performance additives for decorative and
industrial paints and coatings. The Coatings business also includes our Energy
and Adhesives, Sealants and Construction additives businesses.

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