PHILADELPHIA, April 17, 2014 (GLOBE NEWSWIRE) -- Chemtura Corporation (NYSE:CHMT) (Euronext Paris:CHMT) ("Chemtura") today announced that it has entered into a definitive agreement to sell its agrochemicals business, Chemtura AgroSolutions, to Platform Specialty Products Corporation (NYSE:PAH) ("Platform"), a global specialty chemicals company, for approximately $1 billion. The consideration will be funded with $950 million in cash and 2 million shares of Platform's common stock. The transaction is subject to customary purchase price adjustments, closing conditions and regulatory approvals and is expected to close in the second half of 2014.
Upon completion of the sale, Chemtura's core platform will be focused around two attractive segments: Industrial Performance Products ("IPP") (Petroleum Additives and Urethanes) and Industrial Engineered Products ("IEP") (Flame Retardants and Brominated Products, and Organometallics). These businesses are global leaders in the markets they serve and are well-positioned for future growth and strong performance. In calendar 2013, on a pro-forma basis, including the elimination of any stranded costs associated with recent portfolio divestitures, Chemtura generated approximately $1.8 billion in net sales and $200 million of Adjusted EBITDA.
"The sale of Chemtura AgroSolutions accelerates our ability to deliver significant value to shareholders and furthers Chemtura's transformation into a focused, pure-play industrial specialty chemical company," said Craig A. Rogerson, Chairman, President and CEO of Chemtura. "We are excited about the prospects of our industry-leading platforms, including IPP, which increased revenues by 10% and Adjusted EBITDA by 9% in 2013, and IEP, which has a proven track record and a strategy to drive revenue, price and cost improvements as 2014 progresses. We are confident that these leading, global platforms can deliver growth from secular opportunities going forward and benefit from cyclical recovery as it occurs."Rogerson continued, "This sale provides the agrochemicals business with a solid and stable home to build on its positive momentum and growth. At the same time, it gives us added financial flexibility, which will allow us to maintain our conservative balance sheet through the additional reduction of debt and, as previously stated, return substantial value to our shareholders."