Houlihan Lokey is pleased to announce that Kronos Worldwide, Inc. (Kronos) (NYSE:KRO) has acquired the 50% stake in Louisiana Pigment Company, LP (LPC) from Venator Investments, Ltd. (Venator). The transaction is effective as of July 16, 2024.
Kronos is a major international
producer of titanium dioxide (TiO2) products. Headquartered in
Dallas, Texas, Kronos generated revenues of more than $1.6 billion in 2023.
LPC is the newest chloride-process TiO2 production facility in the Western world. LPC is located near Lake
Charles, Lousiana, with a current estimated titanium dioxide annual production
capacity of 156,000 metric tons. Kronos previously operated LPC as a
joint venture with Venator Materials or predecessors of Venator Materials since
1993.
Prior to the acquisition, Kronos, through a wholly owned
subsidiary, held a 50% joint venture interest in LPC. Following the
acquisition, LPC is an indirect, wholly owned subsidiary of Kronos. Kronos
acquired the 50% joint venture interest that it did not already own for an
upfront cash payment of $185 million (subject to working capital adjustments)
and a potential earn-out payment of up to $15 million based on Kronos’
aggregate consolidated net income before interest expense, income taxes, and
depreciation and amortization expense, or EBITDA, during a two-year period
comprising calendar years 2025 and 2026. With full ownership of the LPC
facility, Kronos will expand its product offerings and increase sales to new
and existing customers while recognizing significant synergies, including
commercial, overhead, and supply chain optimization.
Houlihan Lokey served as the exclusive buyside financial
advisor to Kronos and assisted Kronos in structuring and
negotiating the transaction. This deal is exemplary of Houlihan Lokey’s
expertise and continued success in the chemicals sector.
If you would like more information about Houlihan Lokey or have questions regarding the firm’s role in this transaction, please contact one of the team members listed below.
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