reached a definitive agreement to sell its water treatment chemicals and acrylamide product lines to Kemira Group for about $240 million in cash.
The company estimates sales of about $300 million for these two product lines for 2006.
The company expects to close transaction in two phases. The sale of the entire product line, excluding the company's Botlek manufacturing site in the Netherlands, is expected to close by the end of September 2006. The sale of the Botlek site is expected to close in early 2007 in second phase.
The company will receive $220 million on the first closing and the balance on the second closing.
The company expects the deal to cut earnings per share by 4 cents in 2006 and by 15 cents in 2007.
The company will continue to supply acrylonitrile to the acrylamide plant under a long term supply agreement.
Kemira agreed to offer employment to the about 480 employees who are involved in the operations of the product lines.
This story was created through a joint venture between TheStreet.com and IRIS.