Elementis (LSE:ELM) shares were on the front foot, rising 5.7% to 160.4p, after completing the sale of its pharmaceutical manufacturing business to Associated British Foods.
The company said it will return the c.$35m net proceeds to shareholders via a share buyback programme, expected to commence as soon as practicable.
The business was sold for an enterprise value of €34.3m (c.$39.8m) and produced net cash proceeds after transaction costs of approximately €30m (c.$35m), repositioning Elementis as a pure‑play speciality chemicals group focused on Personal Care and Coatings.
The group said the Transaction improves reported adjusted operating margin by 56 basis points at the group level and by 374 basis points in Personal Care, measured on the year ended 31 December 2025, and provided pro‑forma metrics of Group revenue $562.4m, Group adjusted operating profit $122.4m, Personal Care revenue $189.4m, and Personal Care adjusted operating profit $68.5m.
"The Transaction further strengthens the quality of our portfolio and sharpens our focus on our core markets," said Luc van Ravenstein, CEO of Elementis.
The company said it will return the c.$35m net proceeds by way of a share buyback, expected to commence as soon as practicable, citing a robust balance sheet, strong first‑quarter performance and an unchanged full‑year outlook set out in the 29 April trading update.
