Cytec starts sale process for coating resins business

Cytec Industries Inc. announced that it has initiated a formal sale process for its Coating Resins business. J.P. Morgan Securities LLC, the Company’s financial advisor, is assisting Cytec with the process. Cytec’s target is to complete a transaction by the end of the year.  The company decided to proceed with the sale after extensive analysis which showed that the sale of the Coating Resins business is a preferred alternative for separating the business.

The announcement marked another significant step forward for Cytec in executing its portfolio transformation strategy which will bring additional focus to expanding its market and technology leadership positions in high growth advanced composite materials and separation technologies applications.

Cytec has been pursuing a strategy to increase the focus on its highly attractive Engineered Materials, In Process Separation and Additive Technology segments. As part of this strategy, Cytec retained J.P. Morgan Securities LLC to assist in an analysis of alternatives available to effect a separation of its entire Coating Resins business. As part of this analysis, Cytec recently announced the sale of its Pressure Sensitive Adhesive product line. Consistent with its growth strategy, Cytec announced earlier this year the acquisitions of Umeco plc, an international provider of advanced composite materials and Star Orechem International Private Limited, an India-based manufacturer of extraction technology that supports the growth of the In Process Separation segment.

Cytec does not intend to disclose developments regarding the Coating Resins sale process until a transaction is announced, which is estimated to occur later this year.

The Coating Resins segment includes the following product lines: Radiation-Cured Resins (Radcure Resins), Liquid Coating Resins and Additives (including Waterborne Resins, Solventborne Resins, Urethane Resins and Additives), Powder Coating Resins and Amino Crosslinkers.