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Elementis PLC on Tuesday said it plans to return proceeds from the sale of its pharmaceutical manufacturing business to shareholders via a share buyback. The London-based chemical manufacturer said it has completed the sale of its pharmaceutical manufacturing unit to Associated British Foods PLC for an enterprise value of €34.3 million. The deal was first announced in March. The FTSE 250-listing expects net cash proceeds of around €30 million, after transaction costs, and plans to return the proceeds to shareholders through a share buyback programme, which is expected to begin as soon as ‘practicable’. In response, shares in Elementis rose 6.2% to 161.20 pence each in London on Tuesday, the biggest gainer on the FTSE 250, which was up 0.9%. Elementis said the sale strengthens its focus on its core personal care and coatings markets, improves adjusted operating margins for both the group and the Personal Care division, and will reduce future capital intensity. The company added that its balance sheet remains robust and its outlook for 2026 is unchanged. Chief Executive Luc van Ravenstein 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.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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