Chemtura Announces Lion Chemical Capital as Buyer in Expected Sale of EPDM and Certain Rubber Chemicals Businesses
Chemtura Corporation announced that Lion Chemical Capital, LLC is the potential buyer of the company's EPDM business and the rubber chemicals businesses associated with Geismar, Louisiana as well as Flexzone(R) antiozonants worldwide. The letter of intent was signed and announced Nov. 2. The companies expect that a definitive agreement will be completed by year-end.
Chemtura is selling EPDM and Rubber Chemicals in order to focus more intently on its core businesses. Lion plans to merge the two businesses into its existing Lion Copolymer business, located in Baton Rouge, La. The EPDM and Rubber Chemicals businesses being sold had revenues for the twelve months ended Sept. 30, 2006 of approximately $300 million. The transaction is subject to regulatory approvals. Proceeds from the sale will be used primarily for debt reduction.
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