07:49 AM EDT, 08/06/2024 (MT Newswires) -- Neo Performance Materials ( NOPMF ) on Tuesday said it agreed to sell its stake in Neo Rare Metals Quapaw facility to Kevin Reading, the general manager and co-founder of the facility.

Reading will acquire Neo's 80% stake in Quapaw for US$1.4 million plus cash on closing, subject to normal closing adjustments, which represents a 9x multiple of trailing twelve months of the EBITDA of the facility.

The transaction is part of Neo's operational transformation and production optimization commitment to simplify global operations, and includes a five-year agreement for the purchase by Quapaw of gallium and indium from the company's in recycling facility Peterborough, Ontario as well as for the processing and transfer of gallium scrap to the company's Peterborough recycling facility.