21 May 2012 13:54 [Source: ICIS news]
LONDON (ICIS)--Cytec Industries has initiated a formal sale process for its coatings resins business, with a transaction estimated to take place later this year, the US-based specialty chemicals and materials firm said on Monday.
"After extensive analysis, we determined that the sale of our coating resins business is our preferred alternative for separating the business,” said CEO Shane Fleming.
“Today's announcement marks another significant step forward in executing our portfolio transformation strategy, which will bring additional focus to expanding our market and technology leadership positions in high growth advanced composite materials and separation technologies applications,” Fleming added.
The CEO said the company is confident a sale of the coating resins business will continue to create enhanced value for its shareholders.
Cytec has been pursuing a strategy to increase its focus on engineered materials, in-process separation and additive technology.
“As part of this strategy, Cytec retained [asset management service] J P Morgan Securities to assist in an analysis of alternatives available to effect a separation of its entire coating resins business,” the company said.
Cytec recently announced the sale of its pressure sensitive adhesive product line.
The company added: “Consistent with its growth strategy, Cytec announced earlier this year the acquisition of Umeco plc, an international provider of advanced composite materials, and [of] Star Orechem International Private Limited, an India-based manufacturer of extraction technology that supports the growth of the in-process separation segment.”
Cytec does not intend to disclose developments regarding the coating resins sale process until a transaction is announced.
The company announced in October 2011 that it was looking at options for the underperforming coating resins business, including a possible divestment.
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