Specialty chemicals and advanced materials company Rockwood Holdings Inc. has entered into a definitive agreement with Talison Lithium Limited to acquire all of the outstanding shares of Talison in an all-cash transaction for C$6.50 per share for an equity purchase price of approximately C$724 million, on a fully diluted basis (US$732 million). (Earlier post.)
The Board of Directors of Talison has unanimously recommended the transaction to Talison shareholders. The transaction is subject to the approval of Talison shareholders and other customary closing conditions.
Rockwood intends to finance the acquisition using existing cash on its balance sheet and new debt financing.
Earlier this month, Talison officially opened the expansion of the Greenbushes Lithium Operations, located in Western Australia. The expansion was begun in April 2011 and completed and commissioned in June 2012, doubling total nameplate production capacity to approximately 740,000 tonnes per annum lithium concentrate (approximately 110,000 tonnes per annum lithium carbonate equivalent (LCE)).
The acquisition of Talison is the logical next step in further strengthening our lithium business and enhancing our capabilities. This acquisition will enable us to better serve both our existing global customers as well as Talison’s current lithium concentrate customers in China and the rest of the world.—Seifi Ghasemi, Chairman and CEO of Rockwood
Lazard is acting as exclusive financial advisor to Rockwood, and Gilbert & Tobin is acting as Rockwood’s legal counsel.