Cytec Industries announced today it has initiated a formal sale process for its Coating Resins business.
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 are wanting to increase the focus on its highly attractive Composite Engineered Materials, In Process Separation and Additive Technology segments. As part of this strategy, Cytec retained J.P. Morgan Securities LLC 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,
The company 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.
Cytec recently agreed to acquire Umeco, a UK based producer of composite materials for the aerospace and defense industries for about 274 million pounds ($432.6 million).
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