28 January 2011 01:11 [Source: ICIS news]
HOUSTON (ICIS)--Cytec is in talks to sell its Building Blocks Chemicals segment that will allow the company to focus on its other businesses, the US specialty chemicals maker said on Thursday.
“In the fourth-quarter 2010 we committed to a plan to divest the Building Block Chemicals business and are in active discussions with a potential buyer,” Cytec said in its fourth-quarter earnings report.
“With an outstanding performance in 2010, it is an appropriate time to divest the business,” said Cytec chief executive Shane Fleming.
“The divestiture would 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," Fleming said.
“Removing the high cyclicality of sales of this capital intensive commodity business from our business portfolio will also reduce the impact of its volatility to our earnings,” he added.
Cytec did not disclose a potential price tag for the business segment.
In the fourth quarter of 2010, Building Block Chemicals reported $150.6m (€109.9m) in sales, compared with $103.9m in the fourth quarter of 2009. Operating earnings for the fourth quarter of 2010 totalled $9.2m.
($1 = €0.73)
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