5E Advanced Materials acquires Searles Valley Minerals assets in Section 363 sale
FEAM•5E Advanced Materials completed the court-supervised acquisition of Searles Valley Minerals’ operating assets. Consideration included $3.4 million cash, 8.3 million shares, a $6.22 million five-year unsecured promissory note and assumed liabilities.
1. Acquisition and targets
The assets include three processing sites, 54 megawatts of cogeneration capacity, a short-line railroad, a water utility, about 257 employees and 9,000 acres. 5E’s base plan targets about $40 million in steady-state annual adjusted EBITDA, compared with an annualized run-rate adjusted EBITDA of negative $26 million. The stated improvement drivers include $22 million from contract repricing, $10 million from a cost reset, and $33 million from volume recovery and byproducts.
