Cytec Completes Second Phase of Sale of Two Product Lines
Thursday January 11, 9:32 am ET
Water Treatment Chemicals and Acrylamide
WEST PATERSON, N.J.--(BUSINESS WIRE)--Cytec Industries Inc. announced today that it has completed the second of three phases of the sale of its global water treatment chemicals and acrylamide product lines to Kemira Group. The first phase closing included the entire product lines with the exception of Cytec's Botlek manufacturing site in the Netherlands and certain assets at various subsidiaries in Asia/Pacific and Latin America. This second phase completes the transfer of the Botlek site in the Netherlands to Kemira and adds approximately $21 million proceeds to the $208 million received for the first phase closing in October 2006. In conjunction with the completion of this second phase, Kemira and Cytec have entered into a long term manufacturing agreement where Kemira will continue to manufacture certain products for Cytec at the Botlek site.
An estimated $12 million is expected upon completion of the transfer of the assets at the various subsidiaries for an estimated total of $241 million. The remaining closings are subject to certain conditions and the amount could change due to final working capital transferred.
David Lilley, Chairman, President and Chief Executive Officer, said, "I want to thank the Botlek employees for their hard work through this transition period and we wish them and Kemira well."
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.
Cytec Industries Inc. is a global specialty chemicals and materials company focused on developing, manufacturing and selling value-added products. Our products serve a diverse range of end markets including aerospace, adhesives, automotive and industrial coatings, chemical intermediates, inks, mining and plastics. We use our technology and application development expertise to create chemical and material solutions that are formulated to perform specific and important functions in the finished products of our customers.
Source: Cytec Industries Inc.
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