Cytec Industries Inc. (CYT), a maker of reinforced plastics used in aircraft, agreed to buy Umeco Plc (UMC), sending shares of the U.K. supplier for Airbus planes and McLaren racing cars to their highest price ever.
Cytec agreed to pay 550 pence in cash per share, a 46 percent premium to the stock’s closing price yesterday, Umeco said today in a statement. Umeco advanced as much as 48 percent to 555 pence and traded at 552 pence at 11:17 a.m., leading gains in the FTSE All-Share Index.
The purchase values the Warwickshire, England-based manufacturer at 274 million pounds ($437 million), while Cytec had a market capitalization of $2.63 billion at the close of trading yesterday in New York.
Cytec Chief Executive Officer Shane Fleming is refocusing the Woodland Park, New Jersey-based specialty chemicals and materials company on products for planes and cars. The manufacturer said in January it hired JPMorgan Chase & Co. (JPM) to review options for the “separation” of its coating resins unit and last year sold a chemical unit to HIG Capital LLC.
The acquisition “greatly improves our 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,” Fleming said in the statement.
BlackRock Inc. (BLK), Hermes Focus Asset Management and Aberforth Partners, which together hold about 30 percent of Umeco’s stock, have agreed to sell their stakes, the U.K. company said. The offer is “fair and reasonable,” Umeco said.
Umeco’s management board will step down after the planned takeover and the U.K. company’s headquarters will probably be closed, Chief Executive Officer Andrew Moss said today on a conference call.
Rothschild and Investec advised Umeco’s board. Barclays was the sole adviser to Cytec.
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