WE Soda Acquires Soda Ash Producer Genesis Alkali

WE Soda has acquired Genesis Alkali (Alkali), the largest natural soda ash producer in the United States, from Genesis Energy in an all-cash transaction for $1.425 billion.

According to WE Soda, the acquisition will make it the world’s largest soda ash producer and increase the company’s total production capacity to approximately 9.5 million metric tons per year (mtpa).

WE Soda CEO Alasdair Warren said: “The acquisition of Alkali represents a significant strategic milestone; it positions us for future growth, solidifies our industry leadership, enhances our ability to serve customers around the world, and gives us the opportunity to deliver significant operational and efficiency benefits to our stakeholders.

“We are now the world’s largest soda ash producer and the only 100% natural soda ash producer, further underscoring our leadership in sustainability. We have diversified our portfolio both operationally and geographically, and now have a global infrastructure that will further enhance our customer service.”

Alkali operates two large-scale natural soda ash production facilities in Wyoming, USA - Westvaco and Granger, with a total production capacity of 4.35 million tons/year. After the integration process, the combined business of WE Soda and Alkali will be managed as a single business. Over the next five years, WE Soda expects the combined business to achieve $1 billion of incremental free cash flow through optimized growth investment plans while increasing production to approximately 11 million tons per year.