Global chemicals company Venator Materials has bought the European titanium dioxide paper laminates business of counterpart Tronox for €8m, with the manufacturing of the newly acquired product set to transfer to Venator’s facility in County Durham.
Tronox will supply the 8120 Grade product to Venator for the next two to three years to allow for the transition to be completed.
The total cash consideration includes €1m paid upon closing and the remainder paid evenly in the second quarter of 2020 and 2021.
As previously announced, Venator and Tronox also agreed in July 2018 that Tronox will pay Venator a “break fee” of $75m upon consummation of the merger between Tronox and Cristal merger once the sale of the European paper laminates business to Venator has been agreed if the sale of the Ashtabula complex to Venator has not been completed.
Simon Turner, president and chief executive of Venator, said: “The acquisition by Venator of the European paper laminates business fulfils the remaining condition to Tronox’s obligation to promptly pay Venator the break fee due no later than May 13 2019 under our July 14 2018 agreement.
“We intend to vigorously enforce our agreement, if necessary.”