Avecia to sell its "Metal Extraction Products" and "Intermediates & Stabilizers" businesses to Cytec Industries Inc
Avecia announced today that it has signed a definitive agreement to sell substantially all of the assets and liabilities of its US-based Metal Extraction Products (MEP) and intermediates & stabilizers (I&S) businesses to Cytec Industries Inc for approximately US$97m in cash. Included in the sale are the majority of assets at Avecia's Mount Pleasant manufacturing facility, Tennessee. The agreement is subject to regulatory and other customary closing conditions.
The combined businesses had 2002 sales of approximately US $65m. The products are primarily manufactured at the Mount Pleasant facility with a small portion of the I&S products produced at Avecia's New Castle, Delaware facility. These products will continue to be made at the New Castle site under an operating lease agreement between Avecia and Cytec.
Approximately 200 Avecia employees will transfer to Cytec upon completion of the sale.
Jeremy Scudamore, Avecia's Chief Executive Officer said: "We are delighted to have reached agreement with Cytec for the sale of these niche businesses. Avecia is a global leader in extraction chemicals for copper oxide ores and has an established position in acrylic stabilizers and aromatic phosphines. These business units are a complementary fit with Cytec's businesses in these market sectors"
Mr Scudamore added: "The sale of these businesses is consistent with Avecia's strategy of being alert to opportunities that add value for Avecia investors. Going forward under Cytec ownership, both businesses will be well placed to prosper and grow in their respective market sectors".
Net proceeds from the sale will largely be used to repay Avecia's bank debt.
The MEP business is part of Avecia's Specialty Products portfolio and the I&S business is part of Avecia's Fine Chemicals segment.
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