Jefferies: Cytec Announces Acquisition

In a research report published today by Jefferies, Cytec

has announced that it will acquire Umeco

for $439M. According to Jefferies, "The acquisition shifts Engineered Materials' center of gravity towards industrial applications. Umeco produces advanced composite materials for aerospace, defense, industrial, and automotive applications. The deal is expected to be $0.20 accretive in 2012 (vs. our $4.10) and $0.65 accretive in 2013 (vs. our $4.40), and will be funded with cash on hand." Jefferies maintains its Hold rating and $64 PT on Cytec, which closed yesterday at $57.49.