Second phase of the American chemical company Cytec Industries, Inc.’s water treatment and acrylamide business acquisition by Kemira Oyj has been confirmed. The first phase closing in October 2006 included the entire product lines with the exception of Botlek site and certain assets at various subsidiaries in Asia/Pacific and Latin America. This second phase completes the transfer of the Botlek site located in the Netherlands. Assets in Asia / Pacific and Latin America are expected to be transferred during Q2 / 2007.
The estimated total purchase price for the business is EUR 190 million including EUR 16 million for the second phase and approximately EUR 10 million for the last phase.
In 2006, the revenue of the Cytec water treatment and acrylamide chemical business is estimated to amount to EUR 265 million and the company’s staff employed in these businesses totals 480. This acquisition is estimated to improve Kemira’s earnings per share in 2007.
“The acquisition of Cytec’s water treatment chemicals business is in line with Kemira’s growth strategy. It also enables us to significantly broaden our current product portfolio and gain greater geographical presence in key markets and inside key customer segments,” says Mats Jungar, President of Kemwater Business Area at Kemira.
Kemira is the leading global supplier of inorganic coagulants. The company offers water treatment and sludge treatment for municipal and private water treatment plants and industry. After this acquisition the revenue of Kemira’s water chemicals business is increasing almost 70% to approximately EUR 700 million. The company has a staff of around 2,000 working in this business area. Kemira has water treatment chemicals production plants in 30 countries.
For more information, please contact:
Kemira Oyj
Kemwater Business Area
Mats Jungar, President
Tel. +358 (0)10 862 1028, Mobile +358 (0)40 707 4943
Lennart Albertsson, Vice President
Tel. + 46 (0) 42 17 14 67, Mobile +46 (0) 705 979 883
Kemira is a chemicals group that is made up of four business areas: pulp and paper chemicals, water treatment chemicals, performance chemicals and paints. Kemira is a global group of leading chemical businesses with unique competitive position and a high degree of mutual synergy.
In 2005, Kemira recorded revenue of around EUR 2 billion and had a payroll of 8,000 employees. Kemira operates on all continents, in 40 countries.