Chemtura Corporation announced that it has reached agreement to sell its global oleochemicals business to PMC Group NA Inc. for an undisclosed amount, subject to financing and other conditions including customary closing conditions. Included in the transaction is Chemtura's production facility at Memphis, Tenn. Proceeds from the sale will be used primarily for debt reduction. The transaction is expected to close by the end of the first quarter. The oleochemicals business had revenues for 2007 of approximately $175 million.
Chemtura's Memphis facility has about 260 employees, who are expected to transfer to PMC Group NA Inc. The facility produces fatty acids, fatty esters, glycerin approved for pharmaceutical applications, glycerol esters, amides, bisamides, stearates and triglycerides. The Memphis plant is the only producer of primary amides in North America for the plastics additives market.