Kronos Worldwide Acquires 50% Joint Venture Interest In Louisiana Pigment Company For An Upfront Cash Payment Of $185M; Amends $225M Revolving Credit Facility; Decreases Quarterly Dividend From $0.19 To $0.05 Per Share
Portfolio Pulse from Benzinga Newsdesk
Kronos Worldwide, Inc. (KRO) has acquired the remaining 50% joint venture interest in Louisiana Pigment Company for $185M, amended its $225M revolving credit facility to $300M, and decreased its quarterly dividend from $0.19 to $0.05 per share.
July 17, 2024 | 4:29 pm
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Kronos Worldwide has acquired the remaining 50% interest in Louisiana Pigment Company for $185M, amended its revolving credit facility to $300M, and reduced its quarterly dividend from $0.19 to $0.05 per share.
The acquisition of the remaining 50% interest in Louisiana Pigment Company is a significant strategic move for Kronos, making LPC a wholly-owned subsidiary. The amendment of the credit facility increases liquidity, which is positive for the company's financial flexibility. However, the reduction in the quarterly dividend may be viewed negatively by income-focused investors. Overall, the strategic acquisition and improved liquidity are likely to have a positive short-term impact on the stock.
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