The US-based Chemtura Corporation announced on January 2, 2014, that it completed the sale of its Consumer Products business, including dedicated manufacturing plants in the US and South Africa, to KIK Custom Products Inc for an adjusted purchase price of $ 300 million. In October 2013, Chemtura had entered into a stock purchase agreement to sell its Consumer Products business to KIK for $315 million.
The $15 million reduction, announced in the final deal, reflects the resolution of certain pre-closing matters by the parties. The purchase price is subject to a post-closing adjustment for working capital and assumed pension liabilities.
Craig A Rogerson, Chairman, President and CEO, Chemtura, commented, “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 are positioned to win through our product technologies, operating scale, and market access.”
He added, “We are better positioned to deliver growth in the faster-growing regions, and we are in a stronger position to meet our commitment to achieve adjusted EBITDA margins approaching 20 percent. We expect to return a substantial portion of the proceeds from the sale of the Consumer Products business to shareholders, as well as pay down debt such that we preserve the same leverage ratios as we had prior to the sale.”
Chemtura began accounting for its Consumer Products segment as a ‘discontinued operation’ in its third quarter 2013 financial statements.
Chemtura Corporation, with 2012 sales of $2.2 billion, is a global manufacturer and marketer of specialty and agro chemicals. With over $1.6 billion in annual sales and more than 3,600 employees worldwide (post acquisition), Toronto, Canada-based KIK is one of North America's largest contract and private label manufacturers of consumer, institutional and industrial products.
The $15 million reduction, announced in the final deal, reflects the resolution of certain pre-closing matters by the parties. The purchase price is subject to a post-closing adjustment for working capital and assumed pension liabilities.
Craig A Rogerson, Chairman, President and CEO, Chemtura, commented, “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 are positioned to win through our product technologies, operating scale, and market access.”
He added, “We are better positioned to deliver growth in the faster-growing regions, and we are in a stronger position to meet our commitment to achieve adjusted EBITDA margins approaching 20 percent. We expect to return a substantial portion of the proceeds from the sale of the Consumer Products business to shareholders, as well as pay down debt such that we preserve the same leverage ratios as we had prior to the sale.”
Chemtura began accounting for its Consumer Products segment as a ‘discontinued operation’ in its third quarter 2013 financial statements.
Chemtura Corporation, with 2012 sales of $2.2 billion, is a global manufacturer and marketer of specialty and agro chemicals. With over $1.6 billion in annual sales and more than 3,600 employees worldwide (post acquisition), Toronto, Canada-based KIK is one of North America's largest contract and private label manufacturers of consumer, institutional and industrial products.