Elementis PLC (LON:ELM) has announced that it will launch a rights issue to finance the acquisition of Mondo Minerals. It will acquire Mondo Minerals for a reduced value of $500 million following a revised agreement.

Elementis is a leading British speciality chemicals and personal care business. Founded in 1844, it currently employs around 1,300 workers.

This value of the acquisition is lower than the $600 million it had agreed earlier this June. The revised deal will see Elementis pay up to $53.0 million if Mondo Minerals meet specific performance criteria by December 2020.

If the performance targets are fully met, the terms of the revised deal would value Mondo Minerals at $553 million. This is on a cash free and debt free basis.

Additionally, Elementis has said it will finance the acquisition through the proceeds of a 1-for-4 rights issue and through a revolving credit facilities agreement.

Notably, the directors of Elementis have unanimously recommended that shareholders vote in favour of the acquisition.

Paul Waterman, CEO of Elementis, said: “Mondo Minerals is a high quality business with significant opportunities for future growth,”

“Following engagement with our shareholders, we have agreed terms of a revised deal with Advent that we believe represents compelling value.”

“We remain excited by Mondo’s prospects and the significant opportunities we believe this acquisition will unlock for Elementis.”

Shares in Elementis have dropped by 3.01% as of 12:40 BST today.