Kronos Worldwide reports acquisition of 50% JV interest in LPC

Effective July 16, Kronos Worldwide has acquired the 50% joint venture interest in Louisiana Pigment Company, L.P. previously held by Venator Investments, Ltd. Prior to the acquisition, Kronos, through a wholly-owned subsidiary, held a 50% joint venture interest in LPC. Following the acquisition, LPC is an indirect, wholly-owned subsidiary of Kronos. Kronos acquired the 50% joint venture interest that it did not already own for an upfront cash payment of $185M subject to working capital adjustments and a potential earn-out payment of up to $15M based on Kronos’ aggregate consolidated net income before interest expense, income taxes and depreciation and amortization expense, or EBITDA, during a two-year period comprising calendar years 2025 and 2026. “This acquisition is a one-of-a-kind opportunity for Kronos to add value to our customers and better serve the North American market,” said James M. Buch, Kronos CEO. “With full ownership of the LPC facility, Kronos will expand its product offerings and increase sales to new and existing customers while recognizing significant synergies including commercial, overhead and supply chain optimization. By implementing process innovations to increase capacity and improve efficiency using proven technology utilized at other Kronos facilities, we will be better positioned to serve our customers. LPC is the newest chloride-process TiO2 production facility operating in the Western world and we are excited to fully integrate LPC as part of Kronos and to invest in the future of this world class facility.” In connection with its acquisition of the 50% joint venture interest and to support Kronos’ general liquidity needs, Kronos has also completed an amendment to its $225M global revolving credit facility with Wells Fargo. Among other things, the amendment increases the maximum borrowing amount from $225M-$300M, extends the maturity date to 2029 and expands the facility to include LPC and LPC’s receivables and certain of its inventories in the borrowing base.