Cytec Lowers Price for UCB Chemical Unit
Monday February 7, 9:11 am ET
Cytec Says Revised Deal Cuts Price for UCB Chemical Unit by 5 Percent to $1.84 Billion
WEST PATERSON, N.J. (AP) -- Specialty chemical maker Cytec Industries Inc. on Monday said it lowered the price for its planned acquisition of the surface specialties division of Brussels-based UCB SA.
Under the agreement, which was modified to reflect the chemical unit's lower-than-expected 2004 financial results, Cytec will acquire the division for $1.84 billion, 4.5 percent lower than its initial bid of $1.93 billion.
The deal includes contingent payments totaling $64.2 million, depending upon the unit's operating performance in 2005, Cytec said.
About a sixth of the transaction will still be paid with about 5.8 million Cytec common shares, valued at $288.7 million, Cytec added.
In 2004, UCB's business grew total revenue by 13 percent to $1.47 billion, and posted earnings before depreciation, interest, taxes and amortization of $191 million, a gain of 19 percent from the year before.
The deal is now expected to close on Feb. 28, the company said.
Source: Associated Press
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