Elementis to pay less for Mondo on investor backlash
British specialty chemicals company Elementis has struck a deal to buy Mondo Minerals for $100 million less than initially agreed following criticism of the original price from its shareholders.
Elementis said on Tuesday it had agreed with seller US private equity firm Advent to pay $500 million for Mondo Minerals, down from $600 million previously.
Elementis said in June it was buying Amsterdam-based Mondo to expand into talc additives used in a range of products from plastics to cosmetics.
Chief Executive Office Paul Waterman said Elementis had agreed the revised deal after consulting with its shareholders. “The feedback that they had from shareholders was that the business makes a lot of sense, strategically seems good, but they had some concerns raised about the price that Elementis was paying,” a source familiar with the matter told Reuters.
“A number of concerns were raised, but it was largely over the price,” the source added.
Mondo, which owns talc mines in central Finland, makes industrial talc additives used to strengthen plastics, provide corrosion resistance to coatings, an oxygen barrier to food packaging and UV protection to cosmetics.
Elementis owns a mine in California that produces hectorite, a soft clay used in personal care and beauty products such as face creams.