Tronox to sell its Alkali Chemicals business to Genesis Energy_by chemwinfo

2 August 2017

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ABOUT ALKALI BUSINESS

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DETAILS

Tronox Limited announced today

that it has signed a definitive agreement

to sell its Alkali Chemicals business

to Genesis Energy, L.P. (NYSE:GEL),

a diversified midstream energy master limited partnership

headquartered in Houston, Texas, for $1.325 billion in cash. 

The transaction is expected to close

in the second half of 2017, subject to

customary regulatory approvals and closing conditions. 

of natural soda ash

with its mining and processing facilities located in Green River, Wyo. 

Alkali's products are used in

* glass manufacturing, detergents, baked goods,

* animal nutrition supplements, pharmaceuticals,

* and other essential products.

The sale of Alkali Chemicals is the next step

in positioning Tronox as the global leader in TiO_2.  

The proceeds will be used to fund the majority portion

of the cash consideration for the Cristal TiO₂ acquisition,

which is expected to close by the first quarter of 2018. 

As an integral part of this strategy, the company announced

its intention to refinance a portion of its capital structure. 

Net debt leverage of approximately 4.5x

trailing twelve months pro forma EBITDA 

before synergies is expected

at the closing of the Cristal transaction. 

Credit Suisse is acting as financial advisor to Tronox 

for both the Cristal and Alkali transactions and 

Kirkland & Ellis LLP and Willkie Farr & Gallagher LLP are Tronox's legal advisors.

Peter Johnston,

Chief Executive Officer of Tronox

"We were pleased to have received significant interest

 in our Alkali business from multiple potential buyers.

 Genesis' proposal was the most compelling

 for its overall value, with its combination of price,

 favorable contract terms, speed to closing, committed financing,

 and expected ease of regulatory approvals. 

 These considerations, in aggregate,

 provided the highest level of certainty to Tronox. 

 We anticipate being able to close this transaction

 prior to our planned closing of the Cristal TiO₂ acquisition.

"Alkali Chemicals has consistently delivered

 strong operational and financial performance. 

 The caliber of the Alkali workforce and their commitment

 to safe, high-quality production are unmatched

 in the natural soda ash industry. 

 I thank the leadership team and all Alkali employees

 for their contributions to Tronox," 

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