Cytec Industries Sells Adhesives Unit For $105M
WOODLAND PARK, N.J. (AP) — Cytec Industries Inc. said Friday that it will sell a product line of specialty adhesives to the German company Henkel AG for $105 million, as Cytec pares down its offerings and re-evaluates which coating resins it will carry.
Cytec said that the product line, called pressure sensitive adhesives, generated about $94 million in 2011. The all-cash deal with Henkel includes working capital of about $15 million.
The deal is expected to close in the third quarter and is not expected to have an effect on Cytec's adjusted earnings per share this year, the company said. About 80 employees will transfer to Henkel when the transaction closes.
The specialty adhesives are used in industrial and consumer products like labels, tapes, graphics, and some medical applications.
Henkel said the adhesives will complement its product line. The company has sells products in three divisions: adhesives; laundry and home care; and cosmetics and toiletries. Henkel has more than 47,000 employees worldwide.
Cytec CEO Shane Fleming said the sale is part of an ongoing evaluation of which coating resins business the company will keep. Fleming said Cytec is expected to announce its decision on the coating resins this quarter.
Shares of Cytec fell 23 cents to $62.82 in morning trading, near its year-high. Shares have traded between $32.02 and $65 over the last 52 weeks.