Cytec sells building block chemical business

Cytec Industries Inc. has reached an agreement to sell its building block chemicals business, with 2010 sales of $600 million, to an affiliate of HIG Capital, LLC. Total consideration to be received of $180 million includes cash consideration of $165 million at closing and a note for $15 million. The sale is subject to customary closing conditions. “This transaction, when completed, will allow us to put more attention and resources on our core growth platforms of engineered materials, in-process separations and waterborne and radcure coating resins, focusing on organic growth and possible bolt-on acquisitions,” said Shane Fleming, chairman, president and CEO, Cytec. The building block chemicals product lines include acrylonitrile, sulfuric acid and melamine, which are produced mostly for third party sale. Included in the transaction are the sales, marketing, manufacturing, R&D and technical service personnel and the manufacturing site located in Fortier, Louisiana. At closing, the companies will also execute long-term supply agreements for acrylonitrile and melamine at market pricing. The purchaser has agreed to offer employment to the approximately 445 employees who are involved in the operations of this business.