Element Solutions Inc Announces Definitive Agreement to Sell MacDermid Graphics Solutions
September 03 2024 - 4:15PM
Business Wire
Element Solutions Inc (NYSE:ESI) (“Element Solutions”), a global
and diversified specialty chemicals company, today announced an
agreement to sell its flexographic printing plate business,
MacDermid Graphics Solutions, to XSYS, a global specialist provider
in the flexographic printing industry, for an enterprise value of
approximately $325 million. The MacDermid Graphics Solutions
business transferring to XSYS constitutes substantially all of
Element Solutions’ Graphics Solutions reporting vertical. An
existing capital loss should offset nearly all taxable gains from
this transaction. Net proceeds are expected to be used to further
reduce leverage and for general corporate purposes. The transaction
is expected to close in late 2024 or the first half of 2025,
subject to customary closing conditions, adjustments, and
regulatory approvals.
President and Chief Executive Officer Benjamin Gliklich
commented, “MacDermid Graphics is a quality business that is
non-core to Element Solutions’ portfolio and long-term vision. XSYS
represents a great home for its excellent team. Our portfolio going
forward will be more focused and better positioned for even faster
growth and greater cash flow conversion with a stronger balance
sheet to pursue future growth opportunities in our core
markets.”
About Element Solutions
Element Solutions Inc is a leading global specialty chemicals
company whose businesses supply a broad range of solutions that
enhance the performance of products people use every day. Developed
in multi-step technological processes, these innovative solutions
enable customers' manufacturing processes in several key
industries, including consumer electronics, power electronics,
semiconductor fabrication, communications and data storage
infrastructure, automotive systems, industrial surface finishing,
consumer packaging and offshore energy.
More information about the Company is available at
www.elementsolutionsinc.com.
Forward-Looking Statements
This press release contains forward-looking statements,
including, but not limited to, statements regarding whether and
when the sale of Element Solutions’ Graphics Solutions business
will be consummated and the closing will occur, as well as the
anticipated tax treatment, use of proceeds and benefits of the
transaction. These statements are based on the assessment of
information available to management as of the current date and
management's estimates, assumptions or expectations with respect to
future events. These statements are believed to be reasonable,
though are inherently difficult to predict. Actual results could
differ materially from those projected as a result of certain
factors including, without limitation, regulatory actions and other
factors included in Element Solutions’ Form 8-K periodic reports,
10-Q quarterly reports, 10-K annual report and other reports filed
or to be filed with the Securities and Exchange Commission. Element
Solutions undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240903193103/en/
Investor Relations Contact: Varun Gokarn Senior Director,
Strategy and Finance Element Solutions Inc 1-203-952-0369
IR@elementsolutionsinc.com
Media Contact: Scott Bisang / Ed Hammond / Tali Epstein
Collected Strategies 1-212-379-2072 esi@collectedstrategies.com
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