LSB Industries sell climate control business NIBE $364 mn

LSB Industries to sell climate control business to NIBE for $364 mn

5:17 AM, 16th May 2016
LSB Industries to sell climate control business to NIBE for $364 mn

OKLAHOMA CITY, US: LSB Industries Inc (LSB) has entered into a definitive agreement to sell its climate control business (CCB) to NIBE Industrier AB of Sweden for a total cash consideration of $364 million. The climate control business generated approximately $274 million in revenue and $25 million in EBITDA in 2015.

The transaction is expected to close in the third quarter of 2016.

Proceeds from the transaction will primarily be used to pay down debt. As a result, LSB will have greater financial flexibility and an improved capital structure to execute its growth strategies for its core chemical business, including improving the company’s chemical plant on-stream rates.

“Our climate control business is a solid operation with innovative products in multiple categories. We are confident that in NIBE, we have found CCB the right home to realize its full potential,” said Dan Greenwell, president and CEO, LSB

“As a focused chemicals company, our management team can now concentrate entirely on growing our chemical business by leveraging the substantial investments we have made over the last several years to enhance the reliability and profitability of our facilities. Importantly, this transaction will enhance our financial flexibility and allow us to continue to invest in improving our plants. We look forward to realizing the benefits of a standalone LSB Chemical Business,” said Greenwell.

Credit Suisse acted as financial advisor to LSB and Vinson & Elkins LLP acted as legal counsel.

© Worldofchemicals News



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