Jul 18 2006
Kemira Oyj is acquiring Cytec’s water treatment chemical business. The seller is an American chemical company, Cytec Industries Inc. In 2005, the revenue of the Cytec water treatment chemical business totaled approx. EUR 270 million. The purchase price is approx. EUR 190 million. The acquisition will have an EPS enhancing effect starting 2007. With this acquisition, Kemira’s revenue in the water treatment chemical business will almost double and total approx. EUR 650 million.
Cytec’s water treatment chemicals product line consists primarily of products in industrial and municipal waste water treatment. The acquisition includes five production plants located in the US, the Netherlands and England, with businesses in the US, South America, Asia and Europe. The total number of employees is approx. 480, including sales, marketing, manufacturing, R&D and technical services personnel.
“This acquisition is in line with Kemira’s growth strategy and is a major step to expand our market potential and growth opportunities in the water treatment chemical business. With this acquisition, we can significantly broaden our current product portfolio and gain greater geographical presence in key markets and inside key customer segments”, says Mats Jungar, President, Kemwater Business Area in Kemira. “Cytec completes our current service and product portfolio and improves our strategic position globally. This acquisition will strengthen our position as a global leading supplier of coagulants and flocculants”, he continues.
“Our strategy is clear, founded on organic growth and acquisitions. The water treatment chemical business is a business of the future. Increasing environmental awareness and regulations, as well as the need to minimize waste and optimize costs in water treatment processes are causing demand to increase”, says Mats Jungar. "What differentiates Kemira from its competitors is the company’s focus on a customer solution approach in R&D so that customers are involved in development, service and training", he continues.
Kemira’s water treatment chemical business is the leading global supplier of inorganic coagulants. It offers customized solutions for water treatment and sludge treatment for municipal and private water treatment plants and industry. In 2005, Kemira’s water treatment chemical business had revenue of EUR 353 million and a payroll of approx. 1,500 people. It is present in 30 countries.
The agreement is subject to regulatory approvals being granted and the other conditions and terms of the contract being met. Closing day will depend on the approval of competition authorities.