Element Solutions to Acquire Remaining Stake in Guangzhou Facility

TL;DR

Element Solutions buying out its partner for $10M to fully own Guangzhou plant. Full control incoming.

AI Summary

Element Solutions Inc. announced on July 29, 2024, that it has entered into a definitive agreement to acquire the remaining 49% stake in the entity that holds its interest in the Guangzhou, China manufacturing facility. This acquisition, for a purchase price of approximately $10 million, is expected to close in the third quarter of 2024.

Why It Matters

This move signifies Element Solutions' intent to gain full control over a key manufacturing asset, potentially streamlining operations and enhancing its strategic position in the Asian market.

Risk Assessment

Risk Level: low — The acquisition is for a relatively small amount and involves consolidating ownership of an existing facility, posing minimal new risks.

Key Numbers

• $10 million — Acquisition Cost (Purchase price for the remaining 49% stake in the Guangzhou manufacturing facility entity.)
• 49% — Stake Acquired (Percentage of ownership Element Solutions is acquiring to gain full control.)
• Q3 2024 — Expected Closing (Anticipated timeframe for the completion of the acquisition.)

Key Players & Entities

• Element Solutions Inc (company) — Registrant
• Guangzhou, China (location) — Manufacturing facility location
• $10 million (dollar_amount) — Purchase price for remaining stake

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ESI New York Stock Exchange

Filing Documents

• esi-20240729.htm (8-K) — 29KB
• aearningsreleaseex99120246.htm (EX-99) — 461KB
• elementlogo_regxtm-01002a.jpg (GRAPHIC) — 241KB
• esi-20240729_g1.jpg (GRAPHIC) — 286KB
• 0001590714-24-000132.txt ( ) — 1635KB
• esi-20240729.xsd (EX-101.SCH) — 2KB
• esi-20240729_lab.xml (EX-101.LAB) — 23KB
• esi-20240729_pre.xml (EX-101.PRE) — 13KB
• esi-20240729_htm.xml (XML) — 3KB

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. On July 29, 2024, Element Solutions Inc ("Element Solutions") issued a press release announcing its financial results for the three and six months ended June 30, 2024. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), Element Solutions presents certain non-GAAP financial measures. Investors are encouraged to refer to the Non-GAAP Measures section in the press release for definitions and reconciliations of these non-GAAP measures. The information in this Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any filing of Element Solutions, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibits are furnished herewith: Exhibit Number Description 99.1 Press release, dated July 29, 2024, relating to the financial results of Element Solutions for the three and six months ended June 30, 2024 (furnished only) 104 Cover Page Interactive Data File (formatted as Inline XBRL)(furnished only) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ELEMENT SOLUTIONS INC (Registrant) July 29, 2024 /s/ Michael Russnok (Date) Michael Russnok Chief Accounting Officer

View Full Filing

View this 8-K filing on SEC EDGAR