StockMarketWire.com - Specialty chemicals company Elementis said Friday it had reached an agreement to acquire integrated industrial talc additives producer Mondo Minerals B.V in a deal valuing the latter at $600m.

The offer price valued Mondo at an enterprise value of $600m on a cash free, debt free basis and represents a multiple of 13.1 times 2018 year to date earnings (EBITDA), the company said.

For the year end 31 December 2017, Mondo generated revenue of €122m, EBITDA of €31m and an EBITDA margin of 25%. Gross assets of the business as at 31 December 2017 were €341m.

Mondo is an integrated operation and controls one of only two talc deposits of scale in Europe.

Elementis hailed the acquisition a 'strong strategic fit,' as Mondo's business model mirrors the company's existing hectorite based value chain.

The acquisition would be financed by a rights issue of approximately $280m and $775m from new debt facilities, the company said.


At 9:59am: [LON:ELM] Elementis PLC share price was -26.8p at 257p



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