en.Wedoany.com Reported - Elementis plc has announced the completion of the sale of its pharmaceutical manufacturing business to Associated British Foods (ABF). The business was sold for an enterprise value of €34.3 million (approximately $39.8 million). After deducting transaction costs, Elementis received net cash proceeds of around €30 million.

This divestiture is part of Elementis Group's strategic realignment, aimed at repositioning itself as a pure-play specialty chemicals company focused on high-value-added specialty additives for the personal care and coatings markets. Upon completion of the transaction, the adjusted operating profit margins of the Group and the personal care division have improved, and future capital intensity will be reduced. Given Elementis' robust balance sheet, the strong first-quarter results announced in the trading update on April 29, 2026, and the unchanged full-year outlook, the Board has decided to return approximately $35 million of the net cash proceeds from the transaction to shareholders through a share buyback program. This buyback program is expected to commence as soon as possible.

Luc van Ravenstein, CEO of Elementis, expressed satisfaction with the completion of the sale of the pharmaceutical manufacturing business, stating that the transaction enhances the quality of the portfolio and strengthens the company's focus on its core markets. He is excited about the future opportunities and the positive momentum under the "Elevate Elementis" strategy. He believes ABF is the right home for the business, providing a global pharmaceutical platform and established customer relationships to support its continued growth, and thanked the colleagues in the pharmaceutical manufacturing business for their contributions.

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