Business Development Asia (“BDA”) is pleased to announce that its client, The National Titanium Dioxide Company, Ltd. (“Cristal”) and Jiangxi Tikon Titanium Company, Ltd. have entered into a binding framework agreement for Cristal to acquire the titanium dioxide assets of Tikon, which are located in the city of Fuzhou in Jiangxi Province, China. The transaction will consist of a combination of an asset and equity transaction structure. It is anticipated that the transaction will close by the end of Q1 2015, subject to the appropriate approval processes. BDA is acting as the exclusive financial advisor to Cristal on the transaction.
Cristal is one of the world’s largest producers of titanium dioxide and a leading producer of titanium chemicals. The acquisition of Tikon by Cristal is part of Cristal’s strategy to expand its global footprint in all regions of the world and to increase its presence in the world’s largest TiO2 market.
Mark Stoll, Director General – Corporate Development at Cristal, said: “Cristal firmly believes this transaction will further enhance our ability to increase our product offering to our global customer base and show our commitment to supplying the best products and services available in the industry.”
BDA Deal Team
Charles Maynard, Senior Managing Director, Beijing
Lydia Xu, Director, Shanghai
Tim Holder, Senior Advisor, Bahrain
Ahmed Al Balooshi, Senior Associate, Bahrain
Jiageng Li, Associate, Shanghai
Wendy Zhou, Analyst, Shanghai
Cristal is one of the largest producers of titanium dioxide and a leading producer of titanium chemicals. Cristal is the world’s leading supplier of ultrafine titanium dioxide products and titanium chemicals and is a fast-growing producer of mineral sands and titanium metal powder Ti sponge & Metallurgy. Cristal operates seven manufacturing plants in six countries on five continents and employs nearly 4,500 people worldwide. Cristal is owned 66% by Tasnee, a listed Saudi joint stock company and 33% by Gulf Investment Corporation and 1% private investor, a company equally owned by the six states of the Gulf Cooperation Council and headquartered in Kuwait. www.cristal.com
Tikon is a titanium dioxide manufacturer, which was privatized in 2004 from a state owned chemical company. Tikon manufactures rutile and anatase titanium dioxide using the sulphate process. It supplies to a broad range of applications including paints, plastics and paper. The company employs around 1,000 people in China. www.tikon.com.cn
Business Development Asia LLC (“BDA”) is a leader in cross-border investment banking. BDA advises on M&A, capital raising, and restructuring. BDA has been consistently owned and managed by the same team since 1996. It has a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe and Asia. BDA was named Investment Banking Firm of the Year at the ACG Champion’s Awards in 2014. It is headquartered in New York with offices in London, Bahrain, Mumbai, Ho Chi Minh City, Hong Kong, Shanghai, Beijing, Seoul and Tokyo. BDA formed a partnership with William Blair & Company in 2011. BDA carries out its US securities business through BDA Advisors Inc., a broker-dealer registered with the US Securities and Exchange Commission (SEC) and a member of FINRA and SIPC. BDA’s UK subsidiary is authorised and regulated by the Financial Conduct Authority (FCA). www.bdapartners.com
For more information regarding this transaction, please contact Charles Maynard in Beijing at +86 10-5737-9028 or Lydia Xu in Shanghai at +86 21-5407-5580