Pigments manufacturer Venator Materials has completed the sale of its iron oxide business to competitor, Hong Kong-based Cathay Industries.
The £111.7m ($140m) deal will see the Wynyard-based manufacturer receive £103.7m (£130m) cash, net of adjustments and a £39.9m ($50m) reduction in its asset-based lending facility that will improve liquidity. Venator agreed the move in November saying Cathay would be an "excellent long-term strategic owner of the business".
On the back of the deal, Cathay has rebranded as Oxerra and CEO Terence Yu said the acquisition would transform the firm's global manufacturing footprint, providing synergies and new opportunities to growth. He said: "We are thrilled to join two recognized world class leaders in the color pigment industry with an unmatched global manufacturing network across six countries on five continents. Oxerra propels us forward to provide unrivaled products and services in iron oxide and color pigment technology with sustainability across all industries."
