Genesis Energy has completed its $1.32bn acquisition of the Alkali Chemicals business of US mining and chemical company Tronox.
The purchase price offered by the Houston-based midstream energy company also included a near $106m of non-cash net working capital.
According to Genesis Energy, the Alkali business for which it had entered into a definitive agreement last month is the largest producer of sodium carbonate, also known as natural soda ash.
Genesis claims that the Alkali Chemicals business produces about four million tons of natural soda each year which accounts to around 28% of the global production of natural soda ash.
Tronox opted to divest Alkali Chemicals to concentrate more on its titanium dioxide operations.
Tronox CEO Peter Johnston said: “The sale of Alkali Chemicals is an important step in positioning Tronox as the global leader in the titanium dioxide (TiO2) industry.
“The proceeds will be used to fund the majority portion of the cash consideration for the acquisition of the TiO2 assets of Cristal, which is expected to close by the first quarter of 2018.”
For Genesis, the addition of Alkali Chemicals is being seen as a strategic fit with its existing asset base. It is also believed to have several characteristics in common with the current refinery services business of the midstream energy infrastructure and logistics services provider.
The Alkali Chemicals business acquired by the Houston firm features the trona and trona-based exploring and mining, processing and production as well as marketing and selling activities.
Genesis is into onshore facilities and transportation, offshore pipeline transportation marine transportation and refinery services.
Its operations are mainly located in the states of Texas, Louisiana, Mississippi, Arkansas, Wyoming, Alabama, Florida and also in the Gulf of Mexico region.