Cytec Industries – CYT – Intention to acquire all of the outstanding shares of Umeco

Cytec Industries Inc. (NYSE: CYT) announced its firm intention to acquire all of the outstanding shares of Umeco plc (‘Umeco’) (LSE: UMC.L), an international provider of advanced composite materials, in an all-cash transaction valued at approximately $439 million (£274.3 million based on a 1.60 exchange rate). The board of directors of Umeco intends to unanimously recommend the transaction to Umeco shareholders. The acquisition of Umeco will allow Cytec to further enhance and leverage its position as a technology leader in advanced composite materials. The transaction will expand Cytec’s presence in both aerospace and industrial applications, an area where Cytec sees excellent opportunities for growth and value creation.

“We are excited about combining Umeco with Cytec’s existing advanced composites businesses. It greatly improves our composite presence in the industrial sector, where we see tremendous potential for significant value creation in applications like automotive as customers seek to reduce weight and CO2 emissions. In addition, the acquisition also enhances our near-term composite capacity while we complete capital investments over the next few years,” said Shane Fleming, Chairman, President and Chief Executive Officer. “This transaction is consistent with our strategy to focus on profitable and growing segments where we can leverage our technological leadership. The acquisition of Umeco will provide us with additional scale, a dedicated supply chain well-tailored to the needs of the high performance industrial sector and application development capabilities that will help us respond quickly and effectively to customers’ needs.”

Neil Johnson, Non-executive Chairman of Umeco, commented, “Umeco is an excellent fit with Cytec, which can draw on Umeco’s technological capabilities, infrastructure and existing customer base as it continues to build on its industry-leading expertise in advanced composite materials. Further, the acquisition will expand and enhance Cytec’s product and service offering with the addition of the Process Materials business.”

Founded in 1917, Umeco plc is an international provider of advanced composite materials, primarily to the aerospace and defense industries, and industrial sectors such as automotive. Serving high growth, global end markets, Umeco’s Structural Materials business focuses on the development, manufacture and supply of advanced composite materials, and its Process Materials business focuses on the development, manufacture and supply of processing materials for the composites industry. Umeco is headquartered in the U.K. and reported revenues of £207 million ($332 million assuming a 1.60 exchange ratio) in its most recent financial year ended 31 March 2011.

About CYT

CYT’s vision is to deliver specialty chemicals and materials technologies beyond our customers’ imagination. CYT focus on innovation, advanced technology and application expertise enables CYT to develop, manufacture and sell products that change the way our customers do business. These pioneering products perform specific and important functions for our customers, enabling them to offer innovative solutions to the industries that they serve. CYT products serve a diverse range of end markets including aerospace composites, structural adhesives, automotive and industrial coatings, electronics, inks, mining and plastics.

More Posts by this author

• 
  JP Morgan’s Q1 Earnings Beat Estimates (JPM)
• 
  Stocks End Lower for the Week
• 
  Coinstar Shares Rally (CSTR)
• 
  Gold Prices Fall
• 
  Stocks End Sharply Lower on China Growth Worries, Euro Zone Debt Crisis
• 
  Gold and Silver Prices Fall Sharply
• 
  Stocks Headed for a Lower Finish

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.