Cytec Initiates Sale Process for Coating Resins Business
WOODLAND PARK, NJ – Cytec Industries Inc. has initiated a formal sale process for its Coating Resins business. Cytec's target is to complete a transaction by the end of the year. J.P. Morgan Securities LLC, the company's financial advisor, is assisting Cytec with the process.
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 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.
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