01 June 2012
01 June 2012
Cytec Industries has initiated a formal sale process for its Coating Resins business.
J.P. Morgan Securities, the Company’s financial advisor, is assisting Cytec with the process. Cytec’s target is to complete a transaction by the end of the year.
Shane Fleming, Chairman, President and Chief Executive Officer, commented, “After extensive analysis, we determined that the sale of our Coating Resins business is our preferred alternative for separating the business. Today’s announcement marks another significant step forward in executing our portfolio transformation strategy which will bring additional focus to expanding our market and technology leadership positions in high growth advanced composite materials and separation technologies applications. We are confident that a sale of the Coating Resins business coupled with other recent actions will continue to create enhanced value for our shareholders. In the interim, we are committed to building on the momentum underway in our core businesses while remaining focused on meeting the needs of our Coating Resins customers as we operate that business.”
Cytec explains it has been pursuing a strategy to increase the focus on its highly attractive Engineered Materials, In Process Separation and Additive Technology segments. As part of this strategy, Cytec retained J.P. Morgan Securities to assist in an analysis of alternatives available to effect a separation of its entire Coating Resins business. As part of this analysis, Cytec recently announced the sale of its Pressure Sensitive Adhesive product line. Consistent with its growth strategy, Cytec announced earlier this year the acquisitions of Umeco and Star Orechem International that supports the growth of the In Process Separation segment.
Cytec says it does not intend to disclose developments regarding the Coating Resins sale process until a transaction is announced, which is estimated to occur later this year.
According to Cytec, the Coating Resins segment includes the following product lines: Radiation-Cured Resins (Radcure Resins), Liquid Coating Resins and Additives (including Waterborne Resins, Solventborne Resins, Urethane Resins and Additives), Powder Coating Resins and Amino Crosslinkers.