Cytec Industries Inc. 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.
"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," said Shane Fleming, chairman, president and CEO. "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."
Cytec has been pursuing a strategy to increase the focus on its 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 (PSA) product line to Henkel for a$105 million. Full year 2011 sales for the PSA product line were $94 million.
Cytec also 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 said it 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 radcure resins; liquid coating resins and additives including waterborne resins, solventborne resins, urethane resins and additives; powder coating resins; and amino crosslinkers.