UPDATE 1-Cytec initiates sale of coating resins business

Mon May 21, 2012 7:58am EDT

May 21 (Reuters) - Specialty chemicals maker Cytec Industries Inc said it has started the process of selling its coating resins business, aiming to complete a deal by the end of the year.

The company hired J.P. Morgan Securities as a financial adviser for the process.

Cytec has been evaluating options for its coating resin business, which is doing badly due to weakness in housing and manufacturing, especially in Europe.

Coating products, which include varnishes and specialty paints, contributed about half of Cytec's 2011 sales.

The company is increasing its focus on engineered materials, separation and additive technology segments. In April, Cytec announced plans to buy UK-based Umeco Plc, for about $439 million.

Cytec's shares closed at $56.45 on Friday on the New York Stock Exchange. They have risen about 30 percent so far this year.

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