Specialty materials and chemicals company
Cytec Industries Inc.
) has closed its earlier announced divestiture of its coating
resins business to leading private equity firm, Advent
International, for roughly $1.13 billion. The price includes
assumed liabilities of roughly $118 million.
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The coating resins business, which is based in Brussels, Belgium,
has operations throughout Europe, the U.S. and Asia. It makes and
markets synthetic resins used for the production of paints,
coatings and printing inks. Its offerings include liquid coating
resins, radiation-cured resins, powder coating resins and
The coating resins business is one of the leading makers of
coating resins with a vast product portfolio and leading market
and technology positions. Following the divestiture, it has
emerged as an independent company and will adopt a new brand name
in the coming months.
The divestiture marks the transformation of Cytec's portfolio and
allows it to focus on its high-growth areas comprised of advanced
materials and separation technologies, and deliver higher returns
to its shareholders.
Cytec expects to use a major portion of the after-tax proceeds
from the sale to fund its share buyback program, which it expects
to compete by mid-2013. Cytec's Board, in Oct 2012, approved the
repurchase of an additional stock worth $452 million, increasing
the total buyback authorization to $650 million.
Cytec currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering are
Akzo Nobel NV
). While Olin holds a Zacks Rank #1 (Strong Buy), both Akzo Nobel
and Axiall retains a Zacks Rank #2 (Buy).