Chemtura Announces Lion Chemical Capital as Buyer in Expected Sale of EPDM and Certain Rubber Chemicals Businesses
Friday November 10, 12:53 pm ET
MIDDLEBURY, Conn. & HOUSTON--(BUSINESS WIRE)--Chemtura Corporation announced that Lion Chemical Capital, LLC is the potential buyer of the company's EPDM business and the Rubber Chemicals businesses associated with Geismar, Louisiana as well as Flexzone® antiozonants worldwide. The letter of intent was signed and announced Nov. 2. The companies expect that a definitive agreement will be completed by year-end.
Chemtura is selling EPDM and Rubber Chemicals in order to focus more intently on its core businesses.
"We are very happy to be selling these businesses to a company for which they will be core and strategic," said Chemtura Chairman and CEO Robert L. Wood. "We believe this will be beneficial for our customers."
Lion plans to merge the two businesses into its existing Lion Copolymer business, located in Baton Rouge, La. Lion Copolymer is a leading manufacturer and marketer of synthetic rubber.
Peter De Leeuw, chairman of Lion Copolymer, said, "We think the Chemtura businesses are excellent additions to our existing synthetic rubber business. All these businesses will be core to our future and will position us to provide exceptional offerings of rubber-based products and services to customers throughout much of the world. We intend to expand our research and technical service to ensure that customers can count on us to provide solutions for their product needs."
Lion Copolymer CEO Paul Saunders said, "I am pleased that the EPDM and Rubber Chemicals businesses will be part of our family. We share the same high standards for safety, environmental compliance, customer service and high value for our associates that operate our facilities. Since acquiring the SBR business in 2005, we have invested in the people and facilities at our Baton Rouge plant under Lion Copolymer and plan to do the same for the new businesses at Geismar, La."
The EPDM and Rubber Chemicals businesses being sold had revenues for the twelve months ended Sept. 30, 2006 of approximately $300 million. The transaction is subject to regulatory approvals. Proceeds from the sale will be used primarily for debt reduction.
Lion Chemical Capital
Lion Chemical Capital is a private equity firm focused on investing in premier businesses operating in the chemical and related industries. Lion leverages its founders' extensive experience in the chemical industry, executive management, private equity and investment banking. Target investments are highly selective and possess key attributes such as market and technological leadership and strong management.
Chemtura Corporation, with pro forma 2005 sales of $3.9 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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