Chemtura Completes Sale of Consumer Products Segment to KIK Custom Products
PHILADELPHIA CREAM – (COMMERCIAL THREAD) – Regulatory news:
Chemtura Corporation (NYSE: CHMT) (Euronext: CHMT) today announced that it has completed, on December 31, 2013, the sale of its Consumer Products business, including dedicated manufacturing facilities in the United States and South Africa , to KIK Custom Products Inc. (“KIK”) for an adjusted purchase price of $ 300 million. The reduction of $ 15 million reflects the resolution of certain pre-closing issues by the parties. The purchase price is subject to post-closing adjustment for working capital and pension commitments assumed.
“Strategically, we can now focus on a series of markets that benefit from global and secular growth trends where we have the right to play and where we are positioned to win through our product technologies, scale of operation and to our market access, ”said Craig A. Rogerson. , Chairman of the Board, President and CEO of Chemtura. “We are better positioned to generate growth in faster growing regions, and we are better positioned to deliver on our commitment to achieve adjusted EBITDA margins close to 20%. We plan to return a substantial portion of the proceeds from the sale of the Consumer Products business to shareholders, as well as to repay debt so as to maintain the same leverage ratios as before the sale. ”
Chemtura began accounting for its Consumer Products segment as a “discontinued operation” in its third quarter 2013 financial statements.
Chemtura Corporation, with sales of $ 2.2 billion in 2012,1 is a global manufacturer and distributor of specialty chemicals and agrochemicals. Additional information about Chemtura can be found at www.chemtura.com.
With more than $ 1.6 billion in annual sales and more than 3,600 employees worldwide (post-acquisition), KIK, based in Toronto, Canada, is one of the largest contract and branded manufacturers. private consumer, institutional and industrial products in North America. The KIK network now includes 16 integrated manufacturing plants strategically located in North America and one plant in South Africa. KIK’s product lines include bleach, household cleaners and disinfectants, pool and spa water treatment and specialty pool products, personal care, over-the-counter pharmaceuticals and pharmaceuticals, all supported by internal technical expertise and value-added services. KIK manufactures national brand and private label consumer products for Fortune 500 companies. For more information on KIK, visit www.kikcorp.com. KIK is a holding company of New York-based private equity firm CI Capital Partners.
This press release contains 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 words and expressions such as “potential”, “anticipate”, “believe”, “intend”, “estimate”, “expect”, “continue”, “should” , “Could”, “” can “,” plan “,” plan “,” foresee “,” will “and similar expressions and include references to assumptions and relate to our future prospects, developments and business strategies.
Factors that could cause our actual results to differ materially from those expressed or implied in these forward-looking statements include, but are not limited to:
Our ability to execute our portfolio management strategies and our medium and long term business plans in a timely manner;
The successful separation of the Consumer Products business from the rest of our businesses;
Our ability to implement our growth strategies in high growth markets;
Risks associated with strategic disposals; 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 information currently available. Our forward-looking statements include information regarding possible or suspected future operating results, and our actual results may differ materially from the results discussed. Forward-looking information is intended to reflect opinions as of the date of publication of this press release. We assume no obligation to update forward-looking statements to conform them to actual results or to changes in our operations.
1 Net sales of $ 2.2 billion in 2012 reflects the treatment of discontinued operations for Chemtura’s plastic antioxidant and consumer products businesses.