Chemtura To Sell Consumer Products Business To KIK Custom Products For $314 Mln

(RTTNews) - Chemtura Corp. (CHMT) announced that it has entered into a stock purchase agreement to sell its Consumer Products business, including dedicated manufacturing plants in the U.S. and South Africa, to KIK Custom Products Inc., for $315 million in cash.

The company also announced that its board of directors has decided to explore a sale of the company's agrochemicals business, Chemtura AgroSolutions.

Chemtura noted that the agreement to sell the Consumer Products business, combined with the decision to explore a sale of Chemtura AgroSolutions, is aimed at delivering substantial near-term value to shareholders while further focusing the company on opportunities to create additional value as a pure-play leader in the global development, marketing, manufacture and sale of industrial specialty chemicals.

The company said it intends to use a substantial portion of the proceeds from the sale of Consumer Products and potential sale of the agrochemicals business to return capital to shareholders. The company will also use proceeds to continue to make important investments to strengthen and enable the continuing growth of the remaining businesses, as well as pay down debt in order to return towards its long-term stated total leverage target of approximately 2X Adjusted EBITDA.