Chemours Company completed an agreement to sell the assets which comprise its Sulfur Products business to Veolia North America for $325 million in cash.
The transaction includes three sulfuric acid Recovery units located at the Delaware City Refining Co., New Jersey and Texas.
Veolia is a French-based company with about $33 billion in revenues that works in water, waste and energy management areas.
“Today marks the completion of our Chemical Solutions portfolio review—a key milestone in our five-point transformation plan,” said Mark Vergnano, Chemours CEO earlier this year. “In less than one year, we sold our aniline facility in Beaumont, Texas; began cost improvement efforts in our Methylamines business in Belle, W.Va.; began shutdown of our Reactive Metals Business in Niagara Falls, N.Y.; and announced the sale of our Clean and Disinfect and Sulfur businesses. Once complete, we will have a lower capital-intensive and streamlined Chemical Solutions portfolio that includes our growing cyanides business. The total gross proceeds from the three divestitures will be approximately $700 million, providing strategic flexibility as Chemours completes its transformation plan.”
Sulfur Products, with about $250 million in revenue, is a leading provider of sulfuric acid products and services to a range of industries.
It is a leading provider of spent acid regeneration (SAR) and sulfur gas recovery services, non-fuming sulfuric acid and higher value sulfur derivatives. The unit has about 240 employees at seven sites.
Chemours, which was spun off as a public company from DuPont about a year ago, has been working to reduce its debt load and efficiencies. It shut down the Edgemoor titanium dioxide plant near Wilmington last fall.
Chemours also comes with many of the environmental
The company is currently evaluating sites for its headquarters, which is currently in the former DuPont general offices in Wilmington. The state has offered a $7.9 million incentives package.
Barclays is acting as financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Chemours.