Chemtura completes agrochemicals business sale to PSP

Chemtura Corporation announced that it has completed the sale of its agrochemicals business, Chemtura AgroSolutions, to Platform Specialty Products Corporation (PSP or Platform) for approximately $1 billion, consisting of $950 million in cash and 2 million shares of Platform's common stock. The purchase price is subject to customary post-closing adjustments.

 

"The sale of our agrochemicals business accomplishes our stated objective to transform Chemtura into a focused, pure-play industrial specialty chemicals business. It now provides us with the ability to return substantial value to our shareholders through the repurchase of our common stock and to maintain our conservative balance sheet through a reduction of debt," said Craig A. Rogerson, Chairman, President and CEO of Chemtura.

 

With the completion of the sale, Chemtura's core platform is focused around Industrial Performance Products ("IPP") (petroleum additives and urethanes) and Industrial Engineered Products ("IEP") (flame retardants, brominated products and organometallics), global leaders in the markets they serve.

 

Chemtura intends to use a portion of the remaining proceeds from the sale of its agrochemicals business to (i) repay $125 million of its Term Loan with Bank of America, N.A., as administrative agent, (ii) repay $20 million of its China Bank Facility with Agricultural Bank of China, Nantong Branch, and (iii) repurchase the $101 million in aggregate principal amount outstanding under its 7.875% Senior Notes due 2018.