Chemtura Sells Consumer Unit For $315M
PHILADELPHIA (AP) -- Chemtura said Thursday that it will sell its consumer products business for $315 million and is exploring a sale of its agrochemicals unit as it focuses on chemicals for the transportation, energy and electronics industries.
Canada's KIK Custom Products, which makes bleach, household cleaners and pool treatments, is buying the Chemtura consumer division, which makes products for cleaning pools and spas. The deal is expected to close on Dec. 31, KIK said.
Chemtura has already been paring back the company, selling its antioxidant business for $200 million earlier this year.
It wants to focus on industrial performance products such as petroleum additives and industrial engineered products like flame retardants.
The Philadelphia company plans to return some of the proceeds from the consumer products sale to its shareholders, and said it will do the same if it sells Chemtura AgroSolutions. Chemtura said it will also use the money to repay debt and invest in its business.
Chemtura Corp. shares rose 72 cents, or 3.2 percent, to $23.35 on Thursday. The stock added 15 cents to $23.50 in aftermarket trading.