Eramet announced the signature of a binding agreement for the sale of 100% of the shares of TTI (TiZir Titanium & Iron AS, "TTI"), TiZir’s Norwegian plant, to the Tronox Holdings plc.
TTI’s sales reached €154 million and EBITDA amounted to €38 million in 2019.
Mineral sands mining operations in Senegal (Grande Cote Operations) will remain controlled by the Group and will continue to supply ilmenite to TTI for the production of titanium slag and pig iron.
Moreover, the agreement with Tronox includes a supply contract of ilmenite for TTI.
The consideration for the transaction, payable on its completion, is approximately $300 million, representing a multiple of c.8x EBITDA based on the enterprise value.
“This transaction will allow us to fully value TiZir’s Norwegian plant, in the downstream mineral sands business. With our mine in Senegal, which offers a high-value creation potential, we will continue developing in the upstream business," said Christel Bories, chairman and CEO of Eramet. "We have also initiated new mining exploration activities in other geographies for minerals sands. Once completed, this transaction will contribute to strengthening Eramet’s balance sheet.”