Chemtura Corporation CHMT
today announced that it has entered into a stock purchase agreement to sell
its Consumer Products business, including dedicated manufacturing plants in
the U.S. and South Africa, to KIK Custom Products Inc. (“KIK”) for $315
million in cash at closing subject to certain customary pre- and post-closing
adjustments, including for working capital and assumed pension liabilities.
The Company also announced today that 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 at delivering
substantial near-term value to shareholders while further focusing the Company
on opportunities to create 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. The Company will also use proceeds to continue
to make important investments to strengthen and enable the continuing growth
of the remaining businesses, as well as pay down debt in order to return
towards its long-term stated total leverage target of approximately 2X
Adjusted EBITDA.
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