Chemtura Corp divests EPDM business in restructuring initiative

02 July 2007

The widely diversified Chemtura Corporation, which has a presence in crop protection, automotive, construction, consumer, industrial and packaging, specialty chemicals, pool, spa and home care products, has announced having completed the sale of its EPDM chemicals business comprising the Celogen foaming agents associated with the rubber industry.

Revenue for 2006 of the businesses being sold were approximately $185 million.

The divestiture, a part of its restructuring initiative, by Chemtura, which reported sales of $3.7 billion in 2006, also includes the sale of its manufacturing facility at Geismar, Louisiana, an affiliate of Lion Chemical Capital, Lion Copolymer, LLC.

The proceeds of the sale are being used to reduce debt that was incurred to fund the recent acquisition of specialty lubricant producer Kaufman Holdings. Chemtura will account for the transaction in its second quarter financial results.

"This transaction represents significant progress in our ongoing portfolio refinement plan," said CEO Robert L Wood, chairman, Chemtura. "We are pleased to be transferring the business to a buyer who is interested in growing it, which should benefit both customers and employees.

"We want to thank the employees affected by this transaction, as well as our colleagues from around the world who are leaving Chemtura as a result of our global restructuring initiative, for their many contributions to our company. Our restructuring initiative is progressing well; we will be reporting on it in more detail when our second quarter results are reported on 2 August."