Albemarle Strikes Definitive Deal To Sell Chemetall Surface Treatment business For $3.2 Billion To BASF

Albemarle Corporation (NYSE: ALB) revealed that it signed a definitive deal to sell its Chemetall Surface Treatment business to BASF in a cash transaction worth at about $3.2 billion. According to the company, it represented an LTM EBITDA multiple of 15.3x as of March 31, 2016. Albemarle President and CEO, Luke Kissam, commented about the transaction, "The sale of Chemetall reflects Albemarle's continued commitment to maximizing shareholder value by investing in the future growth of our high priority businesses, reducing leverage and returning capital to shareholders."He continued to add, "I would like to thank the Chemetall management team and employees for their exceptional performance and professionalism. For BASF, the purchase of Chemetall represents a unique opportunity to acquire an industry-leading surface treatment business with a proven track record of success."The company said that the transaction is subject to regulatory approvals and other customary closing conditions and is expected to close by year end. The company also indicated that the transaction value is subject to reduction for some underfunded and unfunded pension obligations and further adjustment for cash, indebtedness of the business, and variation, if any, of working capital versus a targeted amount at the time of closing.The stock traded 0.35 percent higher on Thursday.