US Cytec to pay $1.84bn, 4.5% less for UCB division

07 February 2005 15:01  [Source: ICIS news]

LONDON (CNI)--Cytec Industries said Monday it will pay a lower price for the surface specialities division of Brussels-based UCB to reflect the chemical unit’s lower-than-expected 2004 financial results.

 

The US specialty chemicals company now plans to pay $1.84bn (Euro1.4bn) for the division, 4.5% lower than its initial bid of $1.93bn.

 

The deal includes contingent payments totaling $64.2m, depending on the unit’s operating performance in 2005, Cytec said. About a sixth of the transaction will be paid with about 5.8m Cytec common shares valued at $288.7m, the company added.

 

The European Commission (EC) approved the sale in December on condition that Cytec divest the surface specialities plant at Fechenheim, Germany.

 

In 2004, UCB’s business grew total revenue by 13% to $1.47bn and posted earnings before interest, taxes, depreciation and amortization (EBITDA) of $191m, a gain of 19% from the year before.

By: Glenda Thisdell
+44 20 8652 3214

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