UPDATE 1-Taminco to buy Kemira's formic acid business for $191 mln
* U.S. chemicals group to broaden its offering
* Finland's Kemira sheds non-core asset
HELSINKI Dec 23 (Reuters) - U.S. chemicals group Taminco Corp said on Monday it would broaden its offering by acquiring the formic acid business of Finland's Kemira for 140 million euros ($191 million).
The business, which includes a plant in Oulu, Finland, had sales last year of around 140 million euros and earnings before interest, taxes, depreciation and amortization of 23 million.
Taminco, which makes ingredients for crop protection products and animal feeds, said the deal helped it add new product lines. Formic acid's uses include the preservation of animal feed and de-icing airport runways.
Kemira had been expected to shed the business as part of a shift to focus on its water treatment business. However, analyst Antti Saari from Pohjola Markets said the deal price was lower than expected.
"The valuation looks low. There had been speculation of a price closer to 200 million euros," he said.
Shares in Kemira were flat on the Helsinki bourse in thin trading.
Kemira said it expected to report a capital gain from the deal in the first quarter of next year. Skandinaviska Enskilda Banken was its advisor bank.
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