KRONOS WORLDWIDE, INC. ANNOUNCES ACQUISITION OF JOINT VENTURE INTEREST, AMENDMENT TO REVOLVING CREDIT FACILITY AND QUARTERLY DIVIDEND

Acquisition of LPC - Kronos Worldwide, Inc. has acquired the remaining 50% joint venture interest in Louisiana Pigment Company, L.P. for an upfront cash payment of $185 million and a potential earn-out payment of up to $15 million based on EBITDA during 2025 and 2026 [1][2] - Following the acquisition, LPC will become an indirect, wholly-owned subsidiary of Kronos, which previously held a 50% interest since 1993 [1][2] - The acquisition is expected to enhance Kronos' product offerings and increase sales while recognizing significant synergies in commercial, overhead, and supply chain optimization [2] Financial Arrangements - The acquisition was financed using cash on hand and borrowings under Kronos' global revolving credit facility [2] - Kronos has amended its $225 million global revolving credit facility with Wells Fargo, increasing the maximum borrowing amount to $300 million and extending the maturity date to 2029 [3] Dividend Announcement - Kronos' board of directors declared a quarterly dividend of $0.05 per share, a decrease of $0.14 per share compared to the second quarter of 2024, payable on September 19, 2024 [4] - The reduced dividend rate aims to strengthen the balance sheet and provide flexibility for strategic investments and debt service costs related to the LPC acquisition [4]