Dec 28 2009
Chemtura Corporation, debtor-in-possession (Pink Sheets: CEMJQ) ("the Company" or "Chemtura"), today announced that it entered into a definitive agreement with SK Capital Partners ("SK Capital"), a New York-based private equity firm focusing on the specialty materials, chemicals and healthcare industries, whereby SK Capital has agreed to acquire Chemtura's global PVC Additives business.
The sale will include certain assets, the stock of a European subsidiary and the assumption of certain liabilities. The PVC Additives business had revenues of $374 million in the calendar year of 2008 and $177 million for the nine months ended Sept. 30, 2009.
The proposed transaction is subject to approval by the United States Bankruptcy Court for the Southern District of New York (the "Court") and a Court-approved auction process pursuant to which other parties will have the opportunity to submit higher or better offers for the PVC Additives business, as well as certain other closing conditions and consent by Chemtura's debtor-in-possession financing lenders.
The PVC Additives business has a strong, global manufacturing footprint with plant operations in North America and Europe, and tolling agreements in the EU and North America. It also has valuable intellectual property and significant growth initiatives in its pipeline. The PVC Additives business develops, manufactures, sells and distributes tin stabilizers, liquid and solid mixed metals, liquid phosphite esters, epoxidized soybean oil, thiochemicals, organic-based stabilizers, and impact modifiers used primarily in PVC applications.
Craig A. Rogerson, Chemtura's Chairman, President and Chief Executive Officer, said, "We believe that the proposed transaction is the most certain way to maximize the value of the PVC Additives business and is in the best interests of the Company and all of our stakeholders. The PVC Additives business is well-positioned in its industry segments with great technology, blue-chip customers and talented employees, and this proposed transaction will bring a tighter focus to Chemtura's business portfolio."
Chemtura has filed a motion with the Court pursuant to which SK Capital will be the lead or "stalking horse" bidder in a Court-approved auction for the purchase of the PVC Additives business.