Tronox To Acquire TiO2 Business Of Cristal In $1.673 Bln Deal - Quick Facts

(RTTNews) - Tronox Limited (TROX) announced a definitive agreement to acquire the TiO2 business of Cristal, a privately held global chemical and mining company, for $1.673 billion of cash and Class A ordinary shares representing 24 percent ownership in pro forma Tronox. The company said the combination of the TiO2 businesses of Tronox and Cristal creates the world's largest and most highly integrated TiO2 pigment producer with assets and operations on six continents. Tom Casey will remain chairman and CEO of the company. Closing is expected to occur before the first quarter 2018. Tronox will continue as a public company listed on the New York Stock Exchange.

Tom Casey, Tronox CEO, said: "Because we don't expect to take on new debt, we project a 50 percent reduction in our net leverage ratio. EPS accretion of more than 100 percent is expected in year one and we believe that between 2018 to 2021 our projected pro forma EPS, EBITDA and free cash flow growth rates will improve by approximately 70 percent, 30 percent and 60 percent, respectively, versus Tronox standalone."

Tronox also announced its intent to begin a process to sell Alkali business. The company said the cash portion of the purchase consideration is expected to be funded through proceeds from the sale of assets, including the sale of Alkali and selected other non-core assets if appropriate, and cash on hand. Subject to negotiations with Cristal, Tronox has the intention to acquire Cristal's 500 MMT slag production facility in Saudi Arabia.