Imerys today announces that it has completed the disposal of its assets serving the paper market to an affiliate of Flacks Group, a US investment firm, for a net equity value close to €150 million. The payment of the purchase price is staged over time and based on the future performance of the business.
These activities are operated by approximately 900 employees in 24 plants in the Americas and Asia, as well as certain locations in Europe. In 2023, they generated approximately €370 million in sales.
As a reminder, the translation reserve associated with the business disposed of (mainly relating to the devaluation of the Brazilian Real) is recycled to the income statement in accordance with applicable IFRS standards. The Group’s shareholders’ equity will not be affected by this non-cash loss of about €300 million that will be accounted for in the financial statements of the third quarter ending September 30, 2024.
With this divestiture, Imerys achieves another key milestone in its long-term repositioning on growing businesses and value-creation ambitions. It further allows the Group to focus its growth strategy on specialty minerals solutions, in particular in markets such as energy transition, sustainable construction and natural solutions for consumer goods.
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