Cytec Industries Inc. (NYSE:CYT) announced today it has initiated a formal sale process for its Coating Resins business. J.P. Morgan Securities LLC, the Company's financial advisor, is assisting Cytec with the process. Cytec's target is to complete a transaction by the end of the year.
Shane Fleming, Chairman, President and Chief Executive Officer, commented, "After extensive analysis, we determined that the sale of our Coating Resins business is our preferred alternative for separating the business. Today's announcement marks another significant step forward in executing our portfolio transformation strategy which will bring additional focus to expanding our market and technology leadership positions in high growth advanced composite materials and separation technologies applications. We are confident that a sale of the Coating Resins business coupled with other recent actions will continue to create enhanced value for our shareholders. In the interim, we are committed to building on the momentum underway in our core businesses while remaining focused on meeting the needs of our Coating Resins customers as we operate that business."
Cytec has been pursuing a strategy to increase the focus on its highly attractive Engineered Materials, In Process Separation and Additive Technology segments. As part of this strategy, Cytec retained J.P. Morgan Securities LLC to assist in an analysis of alternatives available to effect a separation of its entire Coating Resins business. As part of this analysis, Cytec recently announced the sale of its Pressure Sensitive Adhesive product line. Consistent with its growth strategy, Cytec announced earlier this year the acquisitions of Umeco plc, an international provider of advanced composite materials and Star Orechem International Private Limited, an India-based manufacturer of extraction technology that supports the growth of the In Process Separation segment.
Cytec does not intend to disclose developments regarding the Coating Resins sale process until a transaction is announced, which is estimated to occur later this year.
The Coating Resins segment includes the following product lines: Radiation−Cured Resins (Radcure Resins), Liquid Coating Resins and Additives (including Waterborne Resins, Solventborne Resins, Urethane Resins and Additives), Powder Coating Resins and Amino Crosslinkers.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.
Corporate Profile
Cytec's vision is to deliver specialty chemical and material technologies beyond our customers' imagination. Our focus on innovation, advanced technology and application expertise enables us to develop, manufacture and sell products that change the way our customers do business. Our pioneering products perform specific and important functions for our customers, enabling them to offer innovative solutions to the industries that they serve. Our products serve a diverse range of end markets including aerospace composites, structural adhesives, automotive and industrial coatings, electronics, inks, mining and plastics.
Contact:
Jodi Allen
Investor Relations
(973) 357-3283
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Source: Cytec Industries Inc via Thomson Reuters ONE