Chemtura Announces Expected Sale of Its Organic Peroxides Business to PERGAN GmbH
Friday May 4, 8:30 am ET
MIDDLEBURY, Conn.--(BUSINESS WIRE)--In order to place greater focus on its core businesses, Chemtura Corporation announced that it has signed a definitive agreement to sell its organic peroxides business to German organic peroxides maker PERGAN GmbH in an all-cash transaction for an undisclosed amount. Included in the transaction will be Chemtura's Marshall, Texas manufacturing facility. The transaction, which requires the approval of certain regulatory bodies, is expected to close within 90 days. Proceeds from the sale will be used primarily for debt reduction.
"This sale is a small but important step in the restructuring of our Plastic Additives portfolio," said Chemtura Chairman and CEO Robert L. Wood. "We are divesting product lines where we don't have competitive advantage to better focus on areas where we do."
"PERGAN, which already has organic peroxide facilities in Germany and China, will gain a position in the North American market through this transaction. We are pleased to be transferring this business to a buyer who is interested in growing it, which should benefit both customers and Marshall employees," Wood concluded.
The organic peroxides business being sold had revenues for 2006 of approximately $20 million. Chemtura employs approximately 40 people in its Marshall, Texas facility.
About Chemtura Corporation
Chemtura Corporation, with 2006 sales of $3.7 billion, is a global manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products.
About PERGAN GmbH
PERGAN is a world-class supplier of organic peroxides and other polymer additives to the polymer production and processing industries.
Source: Chemtura Corporation
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