Neo Performance Materials Sells Majority Stake in China Rare Earth Facilities

Highlights

• Neo Performance Materials sold 86% of JAMR for $24.6 million to Shenghe Resources.
• Neo Performance Materials sold 88% of ZAMR for $3.4 million to Shenghe Resources.
• The JAMR transaction represented a 10.6x multiple on the facility’s average EBITDA over five years.
• This strategic sale reduces Neo’s footprint in China.
• The sale strengthens ties with a key player in the global rare earth supply chain.

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Neo Performance Materials has finalized the sale of a majority equity interest (opens in a new tab) in its Chinese rare earth separation businesses to an affiliate of Shenghe Resources Holding Co. (opens in a new tab) The deal includes the sale of 86% of Jiangyin Jiahua Advanced Material Resources Co (opens in a new tab). (JAMR) for $24.6 million and 88% of Zibo Jiahua Advanced Material Resources Co. (opens in a new tab) (ZAMR) for $3.4 million in cash.

The JAMR transaction was notably lucrative, reflecting a 10.6x multiple on the facility’s average EBITDA over the past five years.

The ZAMR sale, revised from an original 98% equity transfer, was valued using an asset-based approach due to the facility’s closure in mid-2024. This strategic divestiture streamlines Neo’s global operations and reduces its footprint in China while unlocking value from legacy assets. It also strengthens ties with Shenghe, a key player in the global rare earth supply chain, amid rising global demand for critical materials used in green technologies.