Chemical
Elementis completes $39.8 million pharma sale
The company confirmed that net cash proceeds of approximately €30 million will be returned to shareholders through a share buyback programme
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By ICN Bureau | June 03, 2026
Elementis, the global specialty chemicals group, has completed the sale of its pharmaceutical manufacturing business to Associated British Foods (ABF) in a deal valued at €34.3 million.
The move marks another step in its strategy to streamline operations and sharpen its focus on higher-margin specialty additives.
The company confirmed that net cash proceeds of approximately €30 million will be returned to shareholders through a share buyback programme, which is expected to begin “as soon as practicable”.
The transaction, first announced on 5 March 2026, reinforces Elementis’s pivot toward becoming a “pure-play specialty chemicals leader” centred on Personal Care and Coatings markets. The group said the deal will improve adjusted operating margins across both the overall business and its Personal Care division, while also reducing future capital intensity.
Elementis said the move comes amid a “robust balance sheet, strong first quarter performance and unchanged outlook for the year,” as previously outlined in its 29 April 2026 trading update.
CEO Luc van Ravenstein said: "We are pleased to have completed the sale of the pharmaceutical manufacturing business. The Transaction further strengthens the quality of our portfolio and sharpens our focus on our core markets. We are excited about the opportunities ahead and the positive momentum behind our Elevate Elementis strategy.
"ABF is the right home for the business, providing a global pharmaceutical platform and established customer relationships to support its continued growth. I would like to thank our colleagues from the pharmaceutical manufacturing business for their contribution to Elementis and wish them all the best for the future.”
The sale underscores Elementis’s ongoing portfolio reshaping as it leans further into its core specialty chemicals strategy under its “Elevate Elementis” plan.
