May 5 2010
Chemtura Corporation, debtor-in-possession (Pink Sheets: CEMJQ) (the "Company" or "Chemtura"), completed the sale of its PVC Additives business to Galata Chemicals ("Galata") on April 30, 2010 for cash consideration of $16.2 million and the assumption by Galata of certain liabilities, including certain pension obligations and environmental liabilities.
"This divestiture was the best way for us to maximize the value of the PVC Additives business and is in the best interests of Chemtura and of the business itself," said Craig A. Rogerson, Chairman, President and CEO of Chemtura. "It is part of our plan to focus on maximizing the total value of our portfolio of businesses as we continue working to strengthen the Company and position it for long-term success."
Galata is a partnership between Aterian Investment Partners, a New York-based private equity firm, and Artek Surfin Chemicals Ltd., a Mumbai, India, family-owned company whose business includes textiles, metal finishing and chemicals.
As previously disclosed, the sale is the result of an auction pursuant to Section 363 of the Bankruptcy Code involving a number of qualified bidders held in February 2010 in New York under the auspices of the U.S. Bankruptcy Court. This is a customary process for companies selling businesses or assets while operating in Chapter 11. The sale includes Chemtura's ownership interest in Chemtura Vinyl Additives GmbH and certain assets used in the manufacture and distribution of PVC additives.
The PVC Additives business has a strong, global manufacturing footprint with plant operations and tolling arrangements in North America and Europe. It also has valuable intellectual property and strong 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. The PVC Additives business has plants in North America and Europe, including two principal facilities in Taft, Louisiana, USA and Lampertheim, Germany.
The transaction will provide all full-time employees of the PVC Additives business with the opportunity to continue in their current positions under new ownership.