Cytec closes deal on Surface Specialties

Cytec Industries has completed its
acquisition of UCB’s Surface
Specialties business in a transaction
valued at $1.79 billion. UCB now owns
approximately 12% of the outstanding
shares of Cytec, and has entered into a
stockholders agreement which provides
for UCB to reduce its stake within five
years, and contains other customary
terms and conditions.
In conjunction with this transaction,
Cytec has agreed to divest Surface
Specialties’ amino resin product line in
2005, and to use the proceeds to reduce
debt. Sales of Surface Specialties’
amino resin product line in 2004 were
approximately €123 million.
“With this acquisition, Cytec
becomes one of the world’s leading suppliers
of specialty chemicals to the coatings
industry, and creates a combined
Cytec entity of approximately $3 billion
based on 2004 pro forma revenues
excluding Surface Specialties’ amino
resin product line,” said David Lilley,
chairman, president and CEO, Cytec
Industries. “This transaction complements
Cytec’s existing product lines by
significantly increasing Cytec’s product
offering to the coatings industry,
including the general industrial, automotive,
architectural, plastics, graphic
arts and wood end-markets.”
Surface Specialties will operate as
a separate segment and Cytec will
integrate its existing coating and performance
and chemicals product lines
into this new segment, which will be
headquartered in Brussels, Belgium.
Ben Van Assche, formerly directorgeneral
of Surface Specialties, has
been named president of Cytec
Surface Specialties and will be elected
an officer of Cytec and a member
of its executive committee.