Cytec Completes Portion of Water Treatment Chemicals Sale to Kemira
Oct. 2, 2006 - Cytec Industries said today that it has completed the first of three phases of the sale of its global water treatment chemicals and acrylamide product lines to Kemira Group. This phase includes the entire product lines with the exception of Cytec's Botlek manufacturing site in the Netherlands, which is expected to close in early 2007, and certain assets at various subsidiaries in Asia/Pacific and Latin America which are expected to close within the next six months.
The timing of the flow of funds is approximately $208 million received today for this closing, an estimated $20 million upon the Botlek closing and an estimated $12 million upon completion of the transfer of the assets at the various subsidiaries for an estimated total of $240 million. Between this closing and the remaining applicable closings, Cytec will contract manufacture and sell water treatment chemicals and acrylamide at the Botlek site solely to Kemira and provide distribution services for Kemira for the products at those Cytec subsidiaries that were not included in this closing.
The remaining closings are subject to certain conditions and the amounts could change due to final working capital transferred.
The estimated 2006 sales of the two product lines are approximately $300 million.
Included in this phase of the transaction are essentially all of the sales, marketing, manufacturing, R&D and technical services personnel and four manufacturing sites, Mobile, Alabama, Longview, Washington, Bradford, UK, and 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 also continue to supply acrylonitrile to the Kemira 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 Kemira will manufacture for Cytec certain mining chemicals at the Mobile, Alabama site and various other products at the Botlek site.
SOURCE: Cytec Industries