London-based WE Soda has completed the $1.425 billion acquisition of Genesis Alkali’s two trona mines in southwest Wyoming, making it the largest producer of natural soda ash in the world, Cowboy State Daily reports.
The all-cash transaction was finalized on Friday and announced on Monday.
The acquisition combines the world’s second- and third-largest trona producers, increasing WE Soda’s total US capacity to 10.5 million tons per year. This positions the company as a global leader in the trona industry, enhancing its ability to compete with China and other international players.
According to WE Soda spokeswoman Liz Brimmer, the company intends to expand operations rather than reduce its workforce.
“People come first, and employees come first,” Brimmer said. “WE Soda is focused on increased capacity and learning from one of the best in the industry, which is the facility and the employees at Genesis Alkali.”
Brimmer emphasized that the deal is a significant economic moment for Wyoming, which has some of the richest trona deposits in the world.
WE Soda CEO Alasdair Warren described the deal as a “transformational moment” for the company. Speaking during an investor call, Warren highlighted the acquisition’s strategic advantages, including:
- Increased scale
- Enhanced sustainability
- Greater supply chain resilience
- Stronger market access
Additionally, the expansion allows WE Soda to grow more cost-effectively. Warren noted that while developing new operations from scratch would cost approximately $1,000 per capacity ton, expanding existing facilities costs about $350 per capacity ton.
“We’re buying at the bottom of the cycle for a business which has a very significant amount of operating leverage,” Warren said. “And we believe there is substantial upside.”
Trona is a naturally occurring mineral used to produce soda ash, an essential ingredient in various products, including:
- Glass
- Soaps and detergents
- Water purifiers
- Paper
- Flue gas desulfurization equipment
Wyoming holds the world’s largest natural trona reserves, with deposits estimated to last over 2,000 years.
Genesis Energy, which owned Genesis Alkali’s Wyoming trona mines since 2017, sold the business to refocus on midstream energy operations.
“This transaction gives Genesis the financial flexibility to accelerate the process of simplifying our capital structure,” said Genesis Energy CEO Grant Sims.
Genesis Energy received approximately $1.01 billion in net cash from the sale, which will be used to pay down debt. WE Soda also assumed $390 million in bonds associated with the alkali business.
The acquisition also includes an export terminal in Oregon, operated by Kinder Morgan, which enhances WE Soda’s global logistics.
“The fit of our two sales portfolios is quite extraordinary,” Warren said. “This deal strengthens our presence in South America and Asia, particularly in the lithium carbonate market, which we previously had limited exposure to.”
