Elementis to buy talc additives maker Mondo Minerals

The acquisition, which is expected to be immediately accretive to Elementis' EBITDA margins, will be financed by a rights issue to raise around $280m and new committed debt facilities of $775m.

Based in Amsterdam, Mondo operates four talc mines in Finland with total resources of more than 90 years and engages in open cast mining to extract talc ore. Last year, the company generated revenue of €122m and earnings before interest, taxes, depreciation and amortisation of €31m.

Elementis said the deal represents an "exceptional" opportunity for it to strength its position as a leading additives company underpinned by sustainable competitive advantages and significant growth opportunities.

Chief executive officer Paul Waterman said: "This is a very compelling opportunity for Elementis and an exciting step in the development of the business. Since we launched the Reignite Growth strategy at the end of 2016, Elementis has been on a journey to transform its portfolio and focus on high value growth businesses with structural competitive advantages and attractive financial characteristics.

"Mondo is an excellent fit and we see significant opportunities to apply Elementis' global knowledge, scale and relationships to unlock additional value and further growth."

At 0920 BST, Elementis shares were down 8.7% to 259p.