Chemtura completes sale consumer products business $300 million

Chemtura completes sale of consumer products business for $300 million

7:40 AM, 3rd January 2014
Chemtura completes sale of consumer products business for $300 million

PHILADELPHIA, US: Chemtura Corporation has completed the sale of its Consumer Products business, including dedicated manufacturing plants in the US and South Africa, to KIK Custom Products Inc for an adjusted purchase price of $300 million. The $15 million reduction reflects the resolution of certain pre-closing matters by the parties. The purchase price is subject to a post-closing adjustment for working capital and assumed pension liabilities.

“Strategically, we can now focus on a series of markets that benefit from global and secular growth trends where we have the right to play and are positioned to win through our product technologies, operating scale, and market access. We are better positioned to deliver growth in the faster-growing regions, and we are in a stronger position to meet our commitment to achieve adjusted EBITDA margins approaching 20 per cent. We expect to return a substantial portion of the proceeds from the sale of the Consumer Products business to shareholders, as well as pay down debt such that we preserve the same leverage ratios as we had prior to the sale,” said Craig A Rogerson, Chairman, President and CEO, Chemtura.

 

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