Chemtura Announces Agreement To Sell Antioxidant and UV Stabilizers Business
For $200 Million to SK Capital Partners
PHILADELPHIA -- November 12, 2012
Chemtura Corporation (NYSE/EuroNext Paris: CHMT) today announced it has
entered into an asset purchase agreement to sell its Antioxidant and UV
Stabilizers business, including dedicated manufacturing plants in the U.S,
France, and Germany, to an affiliate of SK Capital Partners, for $200 million
and the assumption of certain liabilities. The purchase price is subject to a
post-closing net working capital adjustment. The transaction is subject to
customary closing conditions. Proceeds from the sale will be used for
repayment of debt and investment in Chemtura’s continued growth. The
transaction is expected to close by the end of 2012 or in early 2013.
“This divestiture simplifies our business portfolio as we continue to invest
in businesses with less economic sensitivity that make greater contributions
to our strategy of focusing on specialty products and applications with
greater growth potential in our strategic industry segments and in
faster-growing regions,” said Craig A. Rogerson, Chemtura Chairman, President
and CEO. “The purchase price for the Antioxidant and UV Stabilizers business
represents a 6.4X multiple on adjusted EBITDA for the 12 months ended Sept.
30, 2012. The revenues of the business in the same period were approximately
Chemtura will be discussing this divestiture on Thursday, December 6, 2012 at
its Investor Day beginning at 1 p.m. Eastern time in New York City. Details
about the Investor Day are available on the Investor Relations section of the
company’s Web site at www.chemtura.com.
SK Capital is a leading investment firm with a disciplined focus on the
specialty materials, chemicals and healthcare sectors. Their current portfolio
generates over $3 billion in revenues and employs in excess of 3,400 people.
Chemtura Corporation, with 2011 sales of $3 billion, is a global manufacturer
and marketer of specialty chemicals, agro chemicals, and pool, spa and home
care products. Additional information concerning Chemtura is available at
This press release includes forward-looking statements within the meaning of
Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of
the Exchange Act of 1934, as amended. These forward-looking statements are
identified by terms and phrases such as “potential,” “anticipate,” “believe,”
“intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,”
“project,” “predict,” “will” and similar expressions and include references to
assumptions and relate to our future prospects, developments and business
Factors that could cause our actual results to differ materially from those
expressed or implied in such forward-looking statements include, but are not
*Our ability to implement our growth strategies in rapidly growing markets;
*Our ability to successfully integrate acquisitions into our business; and
*Other risks and uncertainties described in our filings with the Securities
and Exchange Commission including Item 1A, Risk factors, in our Annual
Report on Form 10-K.
These statements are based on our estimates and assumptions and on currently
available information. Our forward-looking statements include information
concerning possible or assumed future results of operations, and our actual
results may differ significantly from the results discussed. Forward-looking
information is intended to reflect opinions as of the date this press release
was issued. We undertake no duty to update any forward-looking statements to
conform the statements to actual results or changes in our operations.
Laurence Orton, 203-573-2153
Vice President, Finance and Investor Relations
John Gustavsen, 203-573-3224
Manager, Corporate Communications
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