Trona mine sold to Tronox

The FMC Corporation has reached an agreement to sell its Alkali Chemicals branch and with it, its mine west of Green River.

Tronox, an American chemical company announced it reached an agreement with FMC to purchase its Alkali Chemicals division for $1.64 billion. According to the release from Tronox, approximately $1 billion will be paid in cash while another $600 million will be paid through new debt.

“We are very pleased to welcome Alkali Chemicals to Tronox. With its industry-leading position in markets complementary to ours, Alkali Chemicals brings strong operational and financial performance.  Over the last five years, it has consistently delivered (Earnings Before Interest, Taxes, Depreciation and Amortization) margins in excess of 20 percent and converted approximately 75 percent of its EBITDA to free cash flow. It is a recognized leader in its industry for safety performance,” Tom Casey, chairman and CEO of Tronox said in the company’s announcement.

Pierre Brondeau, FMC’s president, CEO and chairman, said the company is pleased to sell its Alkali Chemicals division to a company like Tronox.

“We achieved our goal of finding the best owner for this business. This is a natural fit for Alkali Chemicals, which will thrive as a new, strategic business at Tronox,” Brondeau said in Tronox’ announcement.

The sales agreement comes after FMC announced the acquisition of Cheminova, a Danish pesticide manufacturer, last September.

In that announcement, Brondeau said the company would reverse an earlier decision to divide FMC into two companies and planned sell the Alkali Chemicals business to help pay for the acquisition. FMC did retain ownership of its lithium business, which is used in making batteries.

According to Tronox, the company estimates Alkali Chemicals would have contributed $800 to the company in 2014. Alkali Chemicals is also the largest producer of natural soda ash, accounting for approximately one-fourth of global production.

The facility west of Green River is estimated to have a reserve life of more than 100 years.