Chemtura Announces Agreement to Sell Oleochemicals Business to PMC Group NA Inc.
Friday January 25, 8:30 am ET
MIDDLEBURY, Conn.--(BUSINESS WIRE)--Chemtura Corporation today announced that it has reached agreement to sell its global oleochemicals business to PMC Group NA Inc. for an undisclosed amount, subject to financing and other conditions including customary closing conditions. Included in the transaction is Chemtura’s production facility at Memphis, Tenn. Proceeds from the sale will be used primarily for debt reduction.
The transaction is expected to close by the end of the first quarter.
The oleochemicals business had revenues for 2007 of approximately $175 million.
“This transaction will be another step in improving our polymer additives business by strategically divesting product lines to better focus on the products and businesses where we have our greatest strengths and leading market positions,” said Chemtura Chairman and CEO Robert L. Wood. “PMC Group NA Inc. is committed to this business and its growth, which will be an advantage to both customers and employees.”
Chemtura’s Memphis facility has about 260 employees, who are expected to transfer to PMC Group NA Inc. The facility produces fatty acids, fatty esters, glycerin approved for pharmaceutical applications, glycerol esters, amides, bisamides, stearates and triglycerides. The Memphis plant is the only producer of primary amides in North America for the plastics additives market.
About Chemtura Corporation
Chemtura Corporation, with 2006 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products.
Source: Chemtura Corporation
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