Shares in Elementis have increased by almost 12% after the firm completed the sale of its Talc business to IMI Fabi for $121m.

The sale to the global talc manufacturer follows a strategic review by the specialty chemicals firm.

Elementis' board said it believes the sale to the Italian firm represents the "best outcome for all stakeholders" and as a result, all sites, employees, assets and liabilities of Talc will move under IMI Fabi’s ownership.

The completion comes as the chemicals firm announced its intention to return $50m to shareholders through a share buyback programme. The scheme has been launched in recognition of the firm’s balance sheet and the "confidence in the streamlined group’s prospects" and is expected to commence as soon as practicable.

Furthermore, Elementis’ outlook for the year remains unchanged.

Chief executive officer at Elementis, Luc van Ravenstein, said: "The board of Elementis conducted an extensive review of the group's strategic options and concluded that the full potential of Talc would be best delivered via a sale of the business.

"We are confident that the combination with IMI Fabi represents the right outcome for the business and best serves the long-term interests of its customers and employees. I would like to take this opportunity to thank all of our Talc colleagues for their dedication, professionalism and service to our customers under Elementis' ownership.

"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."

---