Courtesy of Benzinga.
Chemtura Corporation (NYSE: 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 $390 million.”
