Issue Date: October 15, 2012
Cytec Strikes Coatings Deal
Cytec Industries has signed a definitive agreement to sell its coatings resins business to private equity firm Advent International for nearly $1.2 billion including assumed liabilities. Cytec CEO Shane D. Fleming says divestment of the business, which had $1.6 billion in sales last year, will allow the firm to focus on faster-growing composite, mining chemical, and industrial material businesses. Advent says it intends to help the resins business focus on core competencies and expand its geographic footprint. Cytec first said it was seeking a buyer for the business a year ago. In a conference call with investors, Fleming said two-thirds of the sale’s proceeds will be used to buy back shares. The remainder will go to the firm’s pension fund and for the ongoing expansion of carbon fiber and phosphine chemicals capacity. Cytec created the coatings resins business when it bought the former UCB Surface Specialties in 2004 for $1.8 billion and combined it with its own coatings unit.
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