Chemtura Announces Expected Sale of Industrial Water Additives Business

04-Apr-2006

In order to place greater focus on its core businesses, Chemtura Corporation announced that it has signed a letter of intent and is in final discussions to sell its Industrial water Additives business to a U.K. private equity firm. Excluded from the sale is the Liquibrom(R) product line. The signing of a definitive agreement is subject to negotiation of final terms, European regulatory approvals and works councils consultations. The transaction is expected to close during the second quarter. Proceeds from the sale will be used primarily for debt reduction.

Industrial Water Additives had pro forma 2005 revenues of approximately $80 million. The letter of intent contemplates that no facilities will be included in the transaction and that Chemtura will continue to manufacture products in its Adrian, MI and Trafford Park, UK facilities and sell to the purchaser via a supply agreement. Industrial Water Additives' approximately 40 non-manufacturing employees are expected to become employees of the buyer.

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