* Cytec to use some proceeds for share repurchases
* Advent to assume $118 mln of liabilities
Oct 9 Cytec Industries Inc is selling
its coating resins business to private equity firm Advent
International for $1.03 billion and will use some of the
proceeds for share buybacks.
News of the deal, announced Tuesday, comes five months after
the specialty chemicals maker started a sale process prompted by
falling demand in Europe and rising costs.
Coating products, which include varnishes and specialty
paints, contributed half of Cytec's sales of about $3 billion in
2011. The company is increasing its focus on the higher-margin
engineered materials, process separation and additive technology
segments. In April, it announced plans to buy Britain's Umeco
Plc for $439 million.
Advent will pay $1.03 billion for the coatings business and
also assume liabilities of $118 million, said Cytec, based in
Woodland Park, New Jersey.
Cytec also said its board authorized an additional $452
million for its stock repurchase program, taking its total
authorization to $650 million. The program will be partly
funded by proceeds from the coatings business sale.
The sale is expected to close in the first quarter of 2013,
Cytec said. JPMorgan advised Cytec on the deal.
Cytec initiated the process of selling its coating resins
business in May, the same month it sold its self-adhesive
business to German consumer goods company Henkel for
Cytec stock closed at $64.70 on the New York Stock Exchange