MIAMI--(BUSINESS WIRE)--Element Solutions Inc (NYSE:ESI) ("Element Solutions"), a global and diversified specialty chemicals company, today announced an agreement to sell its flexographic printing plate business, MacDermid Graphics Solutions, to XSYS, a global specialist provider in the flexographic printing industry, for an enterprise value of approximately $325 million. The MacDermid Graphics Solutions business transferring to XSYS constitutes substantially all of Element Solutions' Graphics Solutions reporting vertical. An existing capital loss should offset nearly all taxable gains from this transaction. Net proceeds are expected to be used to further reduce leverage and for general corporate purposes. The transaction is expected to close in late 2024 or the first half of 2025, subject to customary closing conditions, adjustments, and regulatory approvals.
President and Chief Executive Officer Benjamin Gliklich commented, "MacDermid Graphics is a quality business that is non-core to Element Solutions' portfolio and long-term vision. XSYS represents a great home for its excellent team. Our portfolio going forward will be more focused and better positioned for even faster growth and greater cash flow conversion with a stronger balance sheet to pursue future growth opportunities in our core markets."
About Element Solutions
Element Solutions Inc is a leading global specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers' manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing, consumer packaging and offshore energy.
More information about the Company is available at .
Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements regarding whether and when the sale of Element Solutions' Graphics Solutions business will be consummated and the closing will occur, as well as the anticipated tax treatment, use of proceeds and benefits of the transaction. These statements are based on the assessment of information available to management as of the current date and management's estimates, assumptions or expectations with respect to future events. These statements are believed to be reasonable, though are inherently difficult to predict. Actual results could differ materially from those projected as a result of certain factors including, without limitation, regulatory actions and other factors included in Element Solutions' Form 8-K periodic reports, 10-Q quarterly reports, 10-K annual report and other reports filed or to be filed with the Securities and Exchange Commission. Element Solutions undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Investor Relations Contact:
Varun Gokarn
Senior Director, Strategy and Finance
Element Solutions Inc
1-203-952-0369
IR@elementsolutionsinc.com
Media Contact:
Scott Bisang / Ed Hammond / Tali Epstein
Collected Strategies
1-212-379-2072
esi@collectedstrategies.com
