Chemtura Announces Signing of Asset Purchase Agreement For Sale of EPDM and Certain Rubber Chemicals Businesses
Monday February 5, 8:45 am ET
MIDDLEBURY, Conn.--(BUSINESS WIRE)--Chemtura Corporation announced that it has signed an asset purchase agreement to sell its EPDM business; all Rubber Chemicals businesses associated with Geismar, Louisiana; and Flexzone® antiozonants worldwide to Lion Copolymer, LLC, an affiliate of Lion Chemical Capital, LLC. The transaction, which is expected to close by the end of the first quarter, is subject to certain conditions, including regulatory approvals, financing and a comprehensive financial audit. Chemtura will use the proceeds for the recently completed purchase of specialty lubricant producer Kaufman Holdings.
"The sale is part of our plan to divest our non-core businesses and assets so we can focus on our core businesses," said Chairman and CEO Robert L. Wood.
Subject to government approval and the actual completion of the sale, Lion also will purchase Chemtura's interest in Chemtura-CNCCC Danyang Chemical Co., Ltd. After the sale, Lion will have complete responsibility for the company, including operation of the Danyang, China, facility, which produces rubber chemicals.
The approximately 190 employees who work at the Geismar and Danyang facilities are expected to become Lion employees, as are the approximately 25 sales, marketing and R&D personnel related to the businesses being sold.
Chemtura will continue to manufacture other rubber chemicals at a number of facilities around the world and will market them through its existing sales and distribution network and appropriate marketing agreements.
The EPDM and Rubber Chemicals businesses being sold had revenues for the 12 months ended Sept. 30, 2006 of approximately $300 million. The transaction will be slightly dilutive to Chemtura's 2006 and 2007 earnings.
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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