Draslovka Holding a.s., a Czech-based leader in cyanide-based chemical specialties and agricultural chemicals, agreed to acquire the Mining Solutions business of The Chemours Company for $520 million.
The acquisition marks Draslovka’s first major investment in the US.
Wilmington-based Chemours had earlier announced a review of the mining solutions business that produces cyanide in extracting gold and silver.
The mining solutions business is subject to the ups and downs of gold and silver prices. Also, using cyanide in mining operations remains controversial, with some countries issuing bans after waste tailings dams failed and sent chemicals into streams.
“Today’s announcement of the Mining Solutions divestiture furthers our strategy of focusing on our three principal businesses in order to drive long-term shareholder value. Leveraging differentiated strategies, we feel confident that our businesses are well-positioned to deliver growth and higher quality earnings through economic cycles,” said Mark Newman, Chemours CEO. “The entire Mining Solutions team has worked hard to create a leading business with an unmatched record of safety and supply chain stewardship. Draslovka’s long-standing expertise in cyanide coupled with a strategy devoted to growing this business makes them an ideal partner invested in the success of our Mining Solutions employees and customers.”
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 earlier this month), the transaction will create a business able to better serve customers around the world, a release stated.
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 specialty 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 the mining, agriculture, and other industrial sectors.”
.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.
The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approvals and other closing conditions.
Draslovka Holding a.s. is a private holding company based in the Czech Republic. Four Czech families own it.