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Cytec Sells Off Coatings Resins Unit

Monday, April 8, 2013

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Cytec’s longtime coating resins business is now an independent company, yet to be named, after being sold to a global private equity firm.

Cytec Industries Inc. announced Wednesday (April 3) that it had completed the sale of its coating resins business to Advent International.

The total value of the sale was $1.1 billion, including assumed liabilities of approximately $118 million. The final price paid is subject to final working capital and other customary adjustments, Cytec said.

Cytec coating resins
www.mycoatingresins.com

Cytec Industries' coating resins business is now an independent company after being sold to a private equity firm.

'Exciting First Step'

The coating resins business, which will adopt a new brand name in the next few months, is headquartered in Brussels, Belgium, and has operations in Europe, the U.S., and Asia. Cytec is based in Woodland Park, NJ.

The coating resins business develops, produces, and sells synthetic resins for paint, coatings, and printing inks; the portfolio also includes crosslinkers and additives.

"Today is an exciting first step on our journey as an independent company," said Frank J. Aranzana, CEO of the coating resins business, in a press release announcing the sale.

"We thank Cytec for its many years of support and now look forward to the next chapter in our continued growth. We believe our future holds great promise for our employees, our customers and our suppliers," said Aranzana.

Focus on Growth

"With the support of Advent ... and our talented employees around the world, we intend to pursue and achieve the many growth opportunities before us," Aranzana said.

According to Advent, the new company is performing well and is one of the largest producers in a $30 billion global market.

"Our focus for the new company moving forward will be to ensure that it is a leader in the product categories and geographies that present the best growth opportunities now and well into the future," said Ronald Ayles, Managing Director and head of Advent's chemicals practice.

Ayles said Advent would work closely with the new company to help its growth in the U.S. and Europe, as well as expand its product offerings and increase its reach in emerging markets.

'A New Cytec'

"The sale of Coating Resins marks the completion of the transformation of Cytec's portfolio and the beginning of a new Cytec," said Shane Fleming, Chairman, President, and CEO of Cytec.

In May 2012, the company announced that it had reached an agreement to sell its high-performance Pressure Sensitive Adhesives product line to German adhesives maker Henkel AG & Co. for $105 million.

Cytec Industries Inc.

Cytec's CEO said the sale of the coating resins business marked the "completion of the transformation" of the company's portfolio. Last year, Cytec sold its Pressure Sensitive Adhesives line for $105 million.

"We are now able to focus on our growth platforms comprised of advanced materials and separation technologies. We are excited about the future of our company and the ability to drive long-term growth and greater returns to our shareholders," Fleming said.

"I would like to thank the employees in the Coating Resins organization for their dedication and hard work to improve the business performance and for their continued focus and discipline during the divestiture process. I wish them well and continued future success," Fleming said.

Fleming also said the company planned to use most of the after-tax proceeds for its share repurchase program, to be completed by the middle of the year.

About the Companies

The coating resins business has approximately 2,000 employees worldwide, 16 manufacturing facilities, 13 research and technology support centers, and two joint ventures in Korea and Japan.

For more information, visit its temporary website: www.mycoatingresins.com.

Founded in 1984, Advent International has more than 170 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on growth and traditional buyout and strategic repositioning transactions. It five core sectors are business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom.

More information: www.adventinternational.com

   

Tagged categories: Acquisitions; Adhesive; Automotive coatings; Cytec Industries Inc.; Powder coatings; Resins; Urethane

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