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Industrial Specialties
WEST PATERSON, N.J.-based Cytec Industries Inc. has signed a definitive agreement to purchase the surface specialties business of UCB for euro1.5 billion ($1.86 billion) in cash and stock.
"Surface Specialties meets all of our acquisition criteria," says James P. Cronin, executive vice president and chief financial officer of Cytec. "We feel confident in our track record with acquisition."
With this latest acquisition, the twelfth since 1997, Cytec has essentially doubled its size, from $1.47 billion in 2003 sales, to an estimated $2.9 billion for 2004 (excluding the $140 million amino resins business, soon to be sold to eliminate overlap and reduce debt). Until 2003, Cytec had achieved 50 percent growth since 1993, when sales were $971 million.
Brussels, Belgium-based UCB had been looking to exit the specialty chemicals arena to become a pure pharmaceutical manufacturer. Surface specialty sales for 2003 were $1.32 billion.
Both parties expect the sale to be completed by the end of the year. Cytec will pay $1.53 billion in cash and give UCB about 12 percent of Cytec in the form of shares worth about...