Elementis plc (LSE:ELM) shares jumped 10% as it completed the sale of its talc business and said it will give most of the proceeds to investors in the form of a share buyback.
The soapstone business has been sold to Italy's IMI Fabi for net cash proceeds after transaction costs of roughly $55 million, or almost £41 million.
Last August the FTSE 250-listed chemicals group launched a strategic review of the business last August and the board said today that a sale represented "the best outcome for all stakeholders".
CEO Luc van Ravenstein said: "The transaction marks a new chapter in the group's transformation into a pure-play specialty chemicals leader enabling us to focus on and grow our coatings and personal care businesses where we see the greatest potential for profitable, cash-generative growth."
Based on financial results for the past calendar year, the sale was also said to improve the group's adjusted operating profit margin by approximately 240 basis points.
Out of the total proceeds, the board plans to return $50 million via a buyback that is expected to begin "as soon as practicable".