UpdateUS HIG buys, renames Cytec building block chem unit

28 February 2011 23:55  [Source: ICIS news]

(adds paragraph 1, 7-9)

HOUSTON (ICIS)--US private-equity firm HIG Capital has acquired the building-block-chemical business of Cytec Industries, renaming it Cornerstone Chemical, the company said on Monday.

The $180m (€131m) deal was initially announced in late January. The total after-tax proceeds of the transaction should be about $140m, Cytec said, including a 6-year note for $15m.

Upon completing the deal, Cytec said it entered into long-term supply agreements with HIG for melamine and acrylonitrile (ACN).

The Building Block Chemicals product lines include ACN, sulphuric acid and melamine, which are produced mostly for third-party sales, Cytec had said.

A portion of the ACN and melamine production is for internal use, with ACN used to make carbon fibre and melamine used to make certain coating resins, Cytec said.

All products are manufactured at Cytec’s facility at Fortier, Louisiana.
Included in the transaction are the sales, marketing, manufacturing, research and development (R&D) and technical service personnel and the Fortier site.

Cornerstone is the sole maker of melamine in North America, HIG said.

HIG also owns Vantage Specialty Chemicals, an oleochemicals producer in the US.

HIG bought Vantage from Uniqema in 2008.

(Additional reporting by Ben DuBose)

($1 = €0.73)

For more on Cytec, visit ICIS company intelligence

By: Al Greenwood
+1 713 525 2645

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