The acquisition marks Draslovka’s first major investment in the US and advances the company’s international expansion plans.
Prague, Czech Republic – Draslovka Holding a.s. (“Draslovka” or “the Company”), a Czech-based, global, family-owned leader in cyanide-based chemical specialties and agricultural chemicals including next generation fumigants and biocides, today announces that it has agreed to acquire the Mining Solutions business of The Chemours Company (“Chemours”) for a total consideration of $520 million.
The acquisition marks Draslovka’s first major investment in the US and advances the Company’s international expansion plans. Through the combination of Chemours Mining Solution business with Draslovka, and following the recent agreement to acquire the sodium cyanide business of Sasol in South Africa (announced on 12 July 2021), the transaction will create a global leading business able to better serve customers around the world through the combination of Draslovka’s technological expertise and innovation in cyanide-based specialty chemicals and Chemours’ best-in-class customer support and services.
Through the integration of these leading operations, the acquisition provides a stable and growing business with solid margins and a roster of strong customer relationships including a number of the world’s top global mining companies. Draslovka has been impressed by the skills and dedication of Chemours employees and believes that this, the advanced manufacturing and packaging capabilities and its end-to-end operational excellence, will benefit Draslovka’s existing global portfolio.
Chemours Mining Solutions operates the largest solid sodium cyanide plant in the world in Memphis, Tennessee, with a market presence in Mexico, Canada and South America. It has an unmatched record on safety and Draslovka is dedicated to continuing this commitment to safety and the environment. Draslovka plans to leverage its leading technological capabilities and manufacturing expertise to improve the efficiency of the assets across the enlarged portfolio while lowering its carbon footprint.
The transaction is expected to close in the fourth quarter of 2021 subject to regulatory approvals and other customary closing conditions.
Pavel Brůžek, CEO of Draslovka, said:
“This acquisition is Draslovka’s first significant investment in the US and another critical step in our international expansion strategy, making us a global operator. Through the transaction we will produce highly purified liquid hydrogen cyanide (HCN) and HCN-based speciality chemicals on three continents: Europe, Africa, and the Americas. We are excited to add such a qualified and diligent team into the Draslovka family, and that we will be able to share the state-of-the-art technology, knowledge and resources across our global portfolio. In doing so, Draslovka will be able to provide better products and services to our customers in mining, agriculture, and other industrial sectors.
This transaction is also highly synergistic with Sasol’s sodium cyanide business, which we recently agreed to acquire, and we expect to create significant value through Draslovka’s enlarged portfolio of assets. Through acquisitions such as these as well as organic growth, our ambition is to use Draslovka’s market leading CN-based specialty chemicals expertise and technological capabilities to support our global growth plans, and drive improvements in safety, efficiency, and environmental considerations throughout the industry.”
J.P. Morgan AG is acting as sole financial advisor to Draslovka and is the exclusive provider of underwritten debt financing, Dentons is acting as its legal advisor and PwC is acting as financial and tax advisor, Argo Consulting was conducting Operational Assessment and Pilko & Associates was acting as Environmental and H&S advisor. FTI Consulting is acting as communications advisor.
/ENDS
About Draslovka Holding a.s.
Draslovka Holding a.s. (Draslovka) is a global leader in cyanide-based chemical specialties and agricultural chemicals including next generation fumigants and biocides. A private holding company based in the Czech Republic, it is owned by four Czech families collaborating within a framework of bpd partners, a leading family office based in Prague. Draslovka has more than 100 years of experience in hydrogen cyanide (HCN) production and HCN chemistry and specializes in the production of fully synthetic and highly purified liquid HCN, which undergoes further processing for application in a variety of downstream products ranging from the mining through to agriculture sectors. Draslovka aims to be a leading global player in the production of cyanides for use in synthesis, mining, and industrial and agricultural applications.
Draslovka operates in three areas:
1. Chemical Specialities – utilizing cyanide-based molecules for a variety of industrial and pharmaceutical applications.
2. Agriculture Science – producing sustainable fumigants, fertilizers and growth regulators, which help to increase crop yields.
3. Industrial Chemicals – creating chemical compounds for use in a variety of industries ranging from mining and coating.
About Cyanides
Cyanide are substances consisting of Carbon and Nitrogen (CN) which are abundant in nature. These CN based substances have large variety of usages in mining, agriculture, automotive, electroplating & surface treatment, pharmaceutical intermediates, which are used in producing many products of our daily use. For more information about cyanides, their use and effects on environment and human health please go to www.cyanides.org.
Issued on behalf of Draslovka by FTI Consulting
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