The net proceeds from the sale would amount to c.€65m subject to closing adjustments
Sibanye Stillwater grants Eramet a put option for Sandouville hydrometallurgical plant. (Credit: Chris Wiedenhoff from Pixabay.)
Sibanye Stillwater grants Eramet a put option for the acquisition of its Sandouville hydrometallurgical plant in France
Contemplated sale of Sandouville refinery based on attractive value terms and expected to generate a positive impact on Eramet’s results and cash position
New prospects for the employees and the site which continues its turnaround
Transaction in line with the Group’s strategic roadmap aiming at focusing on its core growth projects
Following the strategic review of the Sandouville site, Eramet announces the signature of an exclusive put option agreement with Sibanye-Stillwater, a leading player in precious metals, for the sale of 100% of the shares of its subsidiary, Eramet Sandouville (“Operation”), a hydrometallurgical plant located in France.
The net proceeds from the sale would amount to c.€65m subject to closing adjustments and would be payable upon completion of the Operation.
Eramet could exercise the put option upon the completion of the consultation process of the relevant Eramet’s works councils, which is standard for this type of transaction. The Operation would then be subject to final conditions precedent mostly related to the satisfaction of regulatory approvals.
The site, which employs around 190 people, specialises in the manufacturing of high value-added nickel salts and high-purity metal for specific applications in electroplating, catalysis, super-alloys and electronics materials. In H1 2021, its turnover totalled €77m for an operating loss before D&A of €14m.
Should the transaction succeed, Sibanye-Stillwater plans to continue the turnaround and develop new activities on site.
Christel Bories, Eramet group Chair and CEO, commented:
“This agreement is an opportunity for the Sandouville site and for the Group. Subject to its completion, the transaction would unlock a sustainable future for the site and new prospects to the benefit of the employees and the Normandy region, and would enable Eramet to focus on its core strategic projects.”
Source: Company Press Release