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Elementis PLC shares climbed on Tuesday as it said it has agreed and completed the sale of its Talc business to global talc manufacturer IMI Fabi Spa for an enterprise value of $121 million. The London-based chemicals maker said net cash proceeds after costs from the transaction are in the region of $55 million. Shares in Elementis jumped 14% to 148.40 pence in London on Tuesday morning. The disposal follows the launch of a strategic review of the Talc business in August 2024. Elementis on Tuesday said it believes the sale to IMI Fabi represents ‘the best outcome for all stakeholders’. Elementis said it expects the disposal to improve its adjusted operating profit margin by around 240 basis points and accelerate the delivery of its 2026 financial targets. However, it left its 2025 outlook unchanged. As a result of the sale, Elementis said it intends to return $50 million to shareholders via a share buyback programme, which it expects to launch ‘as soon as practicable’. ‘We are confident that the combination with IMI Fabi represents the right outcome for the business and best serves the long-term interests of its customers and employees,’ said Elementis Chief Executive Officer Luc van Ravenstein. ‘The transaction marks a new chapter in the group’s transformation into a pure-play specialty chemicals leader enabling us to focus on and grow our Coatings and Personal Care businesses where we see the greatest potential for profitable, cash-generative growth,’ CEO van Ravenstein concluded. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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