Elementis - Acquisition of Watercryl Quimica Ltda for $24 million
Elementis plc (ELM.L) ("Elementis" or the "Company") today announces that it has agreed, through its wholly owned subsidiary Elementis Holdings Limited, to purchase Watercryl Quimica Ltda ('Watercryl'), a Brazilian coatings additives company, for a cash consideration of $24 million.
Watercryl was established in 1993 and is a leading supplier of additives to the Brazilian coatings industry, with manufacturing and technical facilities based in Palmital, São Paulo. The acquisition of Watercryl will significantly increase the Company's presence in Latin America and provide a platform for its Specialty Products business to accelerate growth in the region.
For the 12 months ended 31 May 2012 Watercryl reported, on an unaudited basis, sales of $9.3 million and EBITDA of $2.3 million.
Further growth will be driven by combining the market positions, technical capabilities and product portfolios of the two businesses, to expand sales of Watercryl products beyond Brazil and to accelerate the growth of Elementis products in Brazil.
The transaction is expected to close during the second half of 2012.
Commenting on the transaction Group Chief Executive, David Dutro, said:
"This acquisition represents significant progress in extending our reach into the fast growing and increasingly sophisticated Latin America coatings market. Watercryl has a strong presence in Brazil in terms of its product portfolio and manufacturing capabilities and has established an impressive reputation over the past 20 years for exceptional technical service, making it an excellent addition to our Specialty Products Division. Listening to customers' needs and doing whatever it takes to meet them is a philosophy that Watercryl and Elementis share. This acquisition is in perfect sync with our strategy, the opportunity to leverage an expanded, high value and innovative product portfolio to our Latin America customers provides an enviable platform for growth. This is an exciting time for Elementis and we will continue to drive profitable growth both organically and by continuing to look for attractive investment opportunities in the higher growth regions around the world."