April 17, 2014 / 11:46 AM / in 4 years

UPDATE 1-Chemtura to sell agrichemicals business for $1 bln

(Adds details from statement, shares)

April 17 (Reuters) - Chemtura Corp struck a deal to sell its agrichemicals business to rival Platform Specialty Products Corp for about $1 billion as it transforms itself into a pure-play industrial specialty chemical company.

The deal will be funded by $950 million in cash and the issue of 2 million Platform shares.

The deal, expected to close in the second half of 2014, will leave Chemtura with two businesses - one producing petroleum additives and the other flame retardants.

Chemtura AgroSolutions, which sells seeds, insecticides, herbicides and fungicides, generated revenue of $449 million and adjusted EBITDA of $101 million in 2013.

The deal follows Platform’s acquisition of privately held specialty chemicals company MacDermid Group for $1.8 billion in October.

Platform counts hedge fund manager Bill Ackman among its investors.

Platform shares closed at $19.66 on Wednesday on the New York Stock Exchange, while Chemtura closed at $25.21. (Reporting by Swetha Gopinath in Bangalore; Editing by Joyjeet Das and Saumyadeb Chakrabarty)

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