Draslovka Completes $521 million Acquisition of Chemours’ Mining Solutions Business
PRAGUE, Czech Republic--(BUSINESS WIRE)--Draslovka a.s. (“Draslovka” or “the Company”), a Czech Republic-based, global, family-owned leader in CN-based specialty chemicals including next generation fumigants and biocides, today announces that it has completed the acquisition of the Mining Solutions business of The Chemours Company (“Chemours”) for a total consideration of $521 million.
This completion makes Draslovka the world’s largest producer of solid sodium cyanide and a global leader in the manufacture, technological development, and distribution of hydrogen cyanide (HCN) based specialty chemical products. The Company now has operations on three continents – Europe, the Americas, and Australasia – enabling it to provide a best-in-class service to its customers in the mining, agriculture, and diversified industrials sectors across the world.
Draslovka plans to continue its growth trajectory with this enlarged global platform supporting further strategic M&A as well as organic growth as the Company looks to capitalise on a range of opportunities for international expansion, with demand for next-generation CN-based specialty chemical products – such as EDN®, an ozone-friendly alternative to methyl bromide – continuing to increase.
Draslovka raised a $348 million syndicated Term Loan B in November via sole bookrunner J.P. Morgan to support the acquisition of Chemours Mining Solutions business. The Term Loan B and equity from the existing shareholders will be used to fund the acquisition.
Pavel Brůžek, CEO of Draslovka, said:
“We are delighted to announce the completion of this acquisition and to formally welcome our new US employees to Draslovka. 2021 has been a transformative year for our business following over 100 years of organic growth since our founding in 1906. Through this enlarged global platform, we will be better able to serve both new and existing customers, and we plan to invest for growth across our portfolio in support of our ongoing ambitious international expansion plans. We are excited by the prospect of using Draslovka’s market-leading CN-based specialty chemicals expertise and technological know-how to drive improvements in safety and efficiency, enabling us to offer our customers safe and environmentally friendly products as well as our best-in-class customer support and services.”
About Draslovka a.s.
Draslovka a.s. (Draslovka) is a global leader in cyanide-based chemical specialties and agricultural chemicals including next generation fumigants and biocides. A private holding company based in the Czech Republic, it is owned by four Czech families collaborating within a framework of bpd partners, a leading family office based in Prague. Draslovka has more than 100 years of experience in hydrogen cyanide (HCN) production and HCN chemistry and specializes in the production of fully synthetic and highly purified liquid HCN, which undergoes further processing for application in a variety of downstream products ranging from the mining through to agriculture sectors. Draslovka aims to be a leading global player in the production of cyanides for use in synthesis, mining, and industrial and agricultural applications.
Draslovka operates in three areas:
1. Chemical Specialities – utilizing cyanide-based molecules for a variety of industrial and pharmaceutical applications.
2. Agriculture Solutions – producing sustainable fumigants, fertilizers and growth regulators, which help to increase crop yields.
3. Mining Solutions – producing and supplying high quality CN-based products and services to the mining industry worldwide
About CN-based chemistry
Under the standard chemical naming convention CN stands for nitrile and/or cyanide group that are named according to these rules. Compounds in which the carbon atom of the CN group is attached to an acyclic hydrocarbon fragment are generally named using the suffix nitrile and if CN is bound as a salt or ester of hydrocyanic acid, containing the anion CN− or the group —CN these are generally named using the suffix cyanide.
Cyanide are substances consisting of Carbon and Nitrogen (CN) which are abundant in nature. These CN-based substances have large variety of usages in mining, agriculture, automotive, electroplating & surface treatment, pharmaceutical intermediates, which are used in producing many products of our daily use. For more information about cyanides, their use and effects on environment and human health please go to www.cyanides.org.
J.P. Morgan AG is acting as sole financial advisor to Draslovka and is the exclusive provider of underwritten debt financing, Dentons is acting as its legal advisor and PwC is acting as financial and tax advisor, Argo Consulting was conducting Operational Assessment and Pilko & Associates was acting as Environmental and H&S advisor. FTI Consulting is acting as communications advisor.
Issued on behalf of Draslovka by FTI Consulting
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