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:: Cytec To Acquire Avecia's Metal Extractant Products and Intermediates & Stabilizers Businesses
Cytec Industries Inc. have announced the signing of a definitive agreement to acquire substantially all of the assets and liabilities of the Metal Extractant Products (MEP) and Intermediate & Stabilizers (I&S) businesses of Avecia Investments Limited for approximately $97 million in cash.
Included in the purchase is the majority of the assets of Avecia's Mount Pleasant, Tennessee manufacturing facility. The agreement is subject to regulatory and other customary closing conditions.The combined businesses had 2002 sales of approximately $65 million. The products are primarily produced at the Mount Pleasant facility with a small portion of the I&S products produced at Avecia's New Castle, Delaware facility. These products will continue to be made at New Castle under an operating lease agreement between Avecia and Cytec.
David Lilley, Chairman, President and Chief Executive Officer commented, "In addition to our organic growth programs, Cytec continues to explore opportunities to accelerate growth through acquisitions to bolt onto our existing platform business franchises. The acquisition of these businesses fits our external growth strategy and we expect the impact to be essentially neutral to earnings per share in 2003 and accretive to earnings per share beyond."
Shane Fleming, President Cytec Specialty Chemicals, stated "Cytec is a leading supplier of specialty chemicals to the mining industry. The MEP business is the global leader in extractants for copper oxide ores. We are delighted to be entering this segment, which complements our existing Mining Chemicals product line. The MEP business accounted for about half of the acquired businesses' 2002 sales.
Mr. Fleming continued, "The I&S business supplies a variety of specialty products including acrylic stabilizers which fit nicely within our Performance Chemicals product line. The I&S business also includes a position in aromatic phosphines which complements our existing product line of aliphatic phosphine products and provides the opportunity to produce novel aliphatic/aromatic products. We are excited about the opportunity these businesses provide us to build on our specialty chemical franchises by providing our customers with superior technology."
Mr. Fleming further indicated that as a result of the acquisition, approximately 200 Avecia employees associated with the businesses would be joining the nearly 4300 existing world-wide Cytec employees. "I am looking forward to meeting the employees and welcoming them to the Cytec team. Their experience and knowledge is vital to the business and their future contributions are key to our mutual success going forward."
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