12 April 2012 12:38 [Source: ICIS news]
LONDON (ICIS)--Cytec is to acquire UK-headquartered composite materials company Umeco for $439m (€334m), the US-based specialty chemical producer said on Thursday.
Cytec said the acquisition, which is expected to close in the third quarter of 2012, will allow it to further enhance its position as a technology leader in advanced composite materials.
It added that the acquisition will expand the company’s presence in both aerospace and industrial applications.
"We are excited about combining Umeco with Cytec's existing advanced composites businesses. It greatly improves our composite presence in the industrial sector, where we see tremendous potential for significant value creation in applications like automotive, as customers seek to reduce weight and CO2 emissions,” said Cytec CEO Shane Fleming.
"This transaction is consistent with our strategy to focus on profitable and growing segments where we can leverage our technological leadership,” he added.
Neil Johnson, non-executive chairman of Umeco, said: "Umeco is an excellent fit with Cytec, which can draw on Umeco's technological capabilities, infrastructure and existing customer base as it continues to build on its industry-leading expertise in advanced composite materials”.
Cytec said that upon completion of the transaction it will organise the combined assets into two separate segments.
“Umeco's advanced materials business will be integrated into a newly created high performance industrial materials segment that will focus on non-aerospace growth markets,” the company said.
“Cytec's engineered materials segment will continue to focus on aerospace growth opportunities,” it added.
Cytec said it does not anticipate significant workforce reductions resulting from the transaction.
($1 = €0.76)
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