Kemira to Buy Cytec's Water Treatment Chemicals Business
July 17, 2006 - Kemira Oyj has has reached a definitive agreement to buy the water treatment chemicals and acrylamide product lines of Cytec Industries for $240 million in cash (EUR 190 million).
The closing of the sale is expected in two phases. The first phase, which includes the entire product lines excluding Cytec's Botlek manufacturing site in the Netherlands, is expected to close by the end of September, 2006. The second phase for the Botlek site is expected to close in early 2007. Between the closing of phase one and phase two, Cytec will contract manufacture and sell water treatment chemicals and acrylamide at the Botlek site solely to Kemira.
The timing of the flow of funds is $220 million upon the first closing with the balance payable upon the second closing.
Both closings are subject to regulatory approval and certain other conditions.
Included in the deal are the sales, marketing, manufacturing, R&D and technical services personnel and four manufacturing sites, Mobile, Alabama, Longview, Washington, Bradford, UK, and the Botlek site. Also included in the sale is the acrylamide manufacturing plant at Cytec's Fortier, Louisiana facility which will be operated by Cytec personnel under a long term manufacturing agreement. Cytec will continue to supply acrylonitrile to the acrylamide plant under a long term supply agreement.
In addition, under various long term manufacturing agreements, Cytec will manufacture certain water treatment products for Kemira at several of its sites and the purchaser will manufacture for Cytec certain mining chemicals at the Mobile, Alabama site and various other products at the Botlek site. Kemira has agreed to offer employment to the approximately 480 employees who are involved in the operations of the product lines.
SOURCE: Kemira Oyj and Cytec Industries