Chemtura Corp. has agreed to sell its consumer products business to KIK Custom Products Inc. for $315 million, the company said Oct. 10.
Chemtura also announced its board of directors has decided to explore a sale of the company’s agrochemicals business, Chemtura AgroSolutions.
The agreement to sell the consumer products business, combined with the decision to explore a sale of Chemtura AgroSolutions, is aimed creating additional value as a pure-play leader in the global development, marketing, manufacture and sale of industrial specialty chemicals.
The company expects to use a substantial portion of the proceeds from the sale of consumer products and potential sale of the agrochemicals business to return capital to shareholders. Chemtura will also use proceeds to make investments to strengthen the remaining businesses, as well as pay down debt.
"Today’s announcements represent the next step in our plan to simplify and transform our portfolio, positioning us to better benefit from secular industry growth trends in our chosen areas of market focus and create a sustainable competitive advantage,” said Craig A. Rogerson, chairman, president and CEO of Chemtura. “Following the sales of our consumer products and antioxidants businesses, a sale of Chemtura AgroSolutions would transform Chemtura into a more focused, pure-play industrial specialty chemicals company with leading global positions that we believe can capitalize on attractive end-market growth trends, and continue delivering superior value to our shareholders and opportunities for our employees for many years to come.”
A definitive timetable for the sale process has not been finalized and there can be no assurance that the process will result in a sale of the Chemtura AgroSolutions business, the company said.
For more information, visit www.chemtura.com.