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| Chemtura Completes Sale of Industrial Water Additives Business |
Chemtura Completes Sale of Industrial Water Additives Business
05/17/2006 - Chemtura Corporation completed the sale of its Industrial Water Additives business to an affiliate of Close Brothers Private Equity LLP (CBPE), a U.K. firm. In connection with this transaction the company received $85 million in cash. Excluded from the sale is the LiquiBrom(R) product line. Proceeds from the sale will be used primarily for debt reduction.Advertisement
No facilities were included in the transaction. Chemtura will continue to manufacture products in its Adrian, Mich., and Trafford Park, U.K. facilities and sell to the purchaser via supply agreements. Industrial Water Additives' approximately 40 non-manufacturing employees will become employees of BWA Water Additives, a CBPE affiliate. BWA will act as distributor for the LiquiBrom product line. There will be no gain or loss booked on the transaction, which is expected to be dilutive to earnings by $0.01 in 2006 and $0.02 in 2007.
Industrial Water Additives had pro forma 2005 revenues of approximately $80 million, excluding the LiquiBrom product line. Industrial Water Additives is a major producer of organic, polymer-based antiscalants and corrosion inhibitors and bromine-based biocides. |
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