Cytec to Sell Its Share of CYRO Industries Joint Venture

Cytec Industries said today that it has reached a definitive agreement to sell its 50% partnership in CYRO Industries to its joint venture partner Degussa Specialty Polymers, a company of Degussa AG, for cash consideration of $95 million. The completion of the transaction is subject to customary closing conditions.

“This joint venture began in 1976 and has created value for both shareholders. However over the last few years the strategic interest of the partners has changed. The sale of our partnership interest in CYRO enables Cytec to focus greater attention to the growth of our core businesses, while letting our partner devote their resources to the growth of CYRO.” said Chairman, President and Chief Executive Officer Mr. David Lilley. “Our relationship as a supplier of high quality intermediate products to CYRO will not change after this transaction is completed and we wish Degussa and all the employees of CYRO well in their future endeavors.”

James P. Cronin, Executive Vice President and Chief Financial Officer added, “This transaction makes strategic sense for both parties and is consistent with our plan to pay down debt after the recent acquisition of the Surface Specialties business. We expect the estimated proceeds of this transaction to essentially recover the carrying value of our investment in CYRO.”

http://www.cytec.com