Attached files
| file | filename |
|---|---|
| 8-K - LANXESS Solutions US Inc. | v169752_8k.htm |
| EX-2.1 - LANXESS Solutions US Inc. | v169752_ex2-1.htm |
Ex. 99.1
Contacts:
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Stephen
Forsyth
Chemtura
Corporation
Investor
Relations
203-573-2213
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John
Gustavsen
Chemtura
Corporation
Media
Relations
203-573-3224
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Meaghan
Repko / Andrew Siegel
Joele
Frank, Wilkinson Brimmer Katcher
212-355-4449
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Chemtura
Enters Into Agreement To Sell its PVC Additives Business Subject to Completion
of an Auction Process and Court Approval
MIDDLEBURY,
Conn. – Dec. 23, 2009 – Chemtura Corporation, debtor-in-possession (Pink Sheets:
CEMJQ) (“the Company” or “Chemtura”), today announced that it entered into
a definitive agreement with SK Capital Partners (“SK Capital”), a New York-based
private equity firm focusing on the specialty materials, chemicals and
healthcare industries, whereby SK Capital has agreed to acquire Chemtura’s
global PVC Additives business. The sale will include certain assets,
the stock of a European subsidiary and the assumption of certain
liabilities. The PVC Additives business had revenues of $374 million
in the calendar year of 2008 and $177 million for the nine months ended Sept.
30, 2009. The proposed transaction is subject to approval by the
United States Bankruptcy Court for the Southern District of New York (the
“Court”) and a Court-approved auction process pursuant to which other parties
will have the opportunity to submit higher or better offers for the PVC
Additives business, as well as certain other closing conditions and consent by
Chemtura’s debtor-in-possession financing lenders.
The PVC
Additives business has a strong, global manufacturing footprint with plant
operations in North America and Europe, and tolling agreements in the EU and
North America. It also has valuable intellectual property and
significant growth initiatives in its pipeline. The PVC Additives
business develops, manufactures, sells and distributes tin stabilizers, liquid
and solid mixed metals, liquid phosphite esters, epoxidized soybean oil,
thiochemicals, organic-based stabilizers, and impact modifiers used primarily in
PVC applications.
Craig A.
Rogerson, Chemtura’s Chairman, President and Chief Executive Officer, said, “We
believe that the proposed transaction is the most certain way to maximize the
value of the PVC Additives business and is in the best interests of the Company
and all of our stakeholders. The PVC Additives business is
well-positioned in its industry segments with great technology, blue-chip
customers and talented employees, and this proposed transaction will bring a
tighter focus to Chemtura’s business portfolio.”
Chemtura
has filed a motion with the Court pursuant to which SK Capital will be the lead
or “stalking horse” bidder in a Court-approved auction for the purchase of the
PVC Additives business.
Chemtura,
with 2008 sales of $3.5 billion, is a global manufacturer and marketer of
specialty chemicals, crop protection and pool, spa and home care
products. Additional information concerning Chemtura is available at
www.chemtura.com.
Forward-Looking
Statement
This
document includes forward-looking statements within the meaning of Section 27(a) of
the Securities Act of 1933 and Section 21(e) of the Exchange Act of
1934. These forward-looking statements are identified by terms
and phrases such as “anticipate,” “believe,” “intend,” “estimate,” “expect,”
“continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will” and
similar expressions and include references to assumptions and relate to our
future prospects, developments and business strategies.
Factors
that could cause our actual results to differ materially from those expressed or
implied in such forward-looking statements include, but are not limited
to:
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The ability to complete a
restructuring of our balance sheet and significantly strengthen our
company;
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The uncertainties of the
Chapter 11 restructuring
process;
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The ability to complete
asset(s) sales;
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The ability to reduce our
indebtedness levels;
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General economic
conditions;
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Significant international
operations and interests;
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The ability to obtain
increases in selling prices to offset increases in raw material and energy
costs;
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The ability to retain sales
volumes in the event of increasing selling
prices;
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The ability to absorb fixed
cost overhead in the event of lower
volumes;
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Pension and other
post-retirement benefit plan
assumptions;
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The ability to successfully
complete our restructuring programs and the turnaround of our Polymer
Additives segment;
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The ability to obtain growth
from demand for petroleum additive, lubricant and agricultural product
applications;
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The ability to sustain
profitability in our Crop Protection business due to new generic
competition and the failure to secure new products and
technology. Additionally, the Crop Protection business is
dependent on disease and pest conditions, as well as local, regional,
regulatory and economic
conditions;
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The ability to sell methyl
bromide due to regulatory
restrictions;
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Changes in weather conditions
which could adversely affect the seasonal selling cycles in both our
Consumer Products and Crop Protection
segments;
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Changes in the availability
and/or quality of our energy and raw
materials;
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The ability to collect our
outstanding receivables;
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Changes in interest rates and
foreign currency exchange
rates;
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Changes in technology, market
demand and customer
requirements;
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The enactment of more
stringent domestic and international environmental laws and
regulations;
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The ability to realize
expected cost savings under our restructuring plans, Six Sigma and Lean
manufacturing initiatives;
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The ability to recover our
deferred tax assets;
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The ability to support the
goodwill related to our business segments;
and
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Other risks and uncertainties
detailed in Item 1A. Risk Factors or in our filings with the Securities
and Exchange
Commission.
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These
statements are based on the Company’s estimates and assumptions and on currently
available information. The forward-looking statements include information
concerning the Company’s possible or assumed future results of operations, and
the Company’s actual results may differ significantly from the results
discussed. Forward-looking information is intended to reflect
opinions as of the date this press release was issued and such information will
not necessarily be updated by the Company.