Elementis plc shares rose over 13% after completing the $121 million sale of its Talc business to IMI Fabi S.p.A, expecting net cash proceeds of approximately $55 million. The sale, initiated after an August 2024 review, aims to improve Elementis' adjusted operating profit margin by around 240 basis points and accelerate the achievement of its 2026 financial targets. Elementis plans to return $50 million to shareholders through a share buyback program following the sale, which marks the first major move under new CEO Luc van Ravenstein.
Elementis plc (LON:ELM) shares surged over 13% following the announcement of the completed sale of its Talc business to IMI Fabi S.p.A. for an enterprise value of $121 million. This transaction is expected to yield net cash proceeds of approximately $55 million after transaction costs. The divestiture, which followed a review of the Talc business launched in August 2024, is projected to improve Elementis' adjusted operating profit margin by an estimated 240 basis points, based on full-year 2024 results, and is anticipated to accelerate the company's progress towards its 2026 financial targets. This sale represents the first significant strategic move under new Chief Executive Luc van Ravenstein, who assumed leadership on April 29, and is described as a key step in Elementis' transformation. Concurrently, Elementis has announced plans to return $50 million to shareholders via a share buyback program, while its dividend policy will remain unchanged, and the company has maintained its positive outlook for the current financial year as stated in its April first-quarter trading update.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
strongly positive
Sentiment Score
0.85
