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Jodi Allen
Investor Relations
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Cytec
Announces Agreement to Sell Pressure Sensitive Adhesives Product
Line
Woodland Park, New
Jersey, May 11, 2012 – Cytec Industries Inc. (NYSE:CYT)
announced today it has reached a definitive agreement to sell
its Pressure Sensitive Adhesives (PSA) product line to Henkel
for total consideration of $105 million in cash, including
working capital of approximately $15 million. Full year 2011
sales for the PSA product line were $94 million.
Shane Fleming, Chairman, President and Chief Executive Officer
commented, “This transaction is another important step in our
portfolio transformation as we seek to drive a greater amount of
organic and inorganic growth from our specialty growth
platforms. We continue to make meaningful progress with our
ongoing evaluation of the remaining Coating Resins business and
are on track to announce our decision this quarter.”
The technologies included in the PSA sale are GELVA®
GME and UCECRYL® emulsion-based pressure sensitive
adhesives, GELVA® GMS and SOLUCRYL®
solvent-based PSA’s, and GELVA® GMR UV-curable PSA’s.
These specialty products are used in a variety of industrial and
consumer markets including labels, tapes, graphics, and
transdermal medical applications.
Approximately 80 PSA employees will transfer to Henkel upon the
closing of the transaction. The transaction is expected to be
essentially neutral to Cytec’s as-adjusted continuing earnings
per diluted share in 2012. The transaction is expected to close
in the third quarter of 2012 and is subject to customary closing
conditions.
Use of Non-GAAP Measures
Management believes that earnings per share before special
items, which is a non-GAAP measurement, is meaningful to
investors because it provides a view of the Company with respect
to ongoing operating results. Special items represent
significant charges or credits that are important to an
understanding of the Company’s overall operating results in the
period presented. Such non-GAAP measurements are not recognized
in accordance with generally accepted accounting principles
(GAAP) and should not be viewed as an alternative to GAAP
measures of performance.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained
herein, statements contained in this release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Achieving the results
described in these statements involves a number of risks,
uncertainties and other factors that could cause actual results
to differ materially, as discussed in Cytec’s filings with the
Securities and Exchange Commission.
Corporate Profile
Cytec’s vision is to deliver specialty chemical and material
technologies beyond our customers’ imagination. Our focus on
innovation, advanced technology and application expertise
enables us to develop, manufacture and sell products that change
the way our customers do business. Our pioneering products
perform specific and important functions for our customers,
enabling them to offer innovative solutions to the industries
that they serve. Our products serve a diverse range of end
markets including aerospace composites, structural adhesives,
automotive and industrial coatings, electronics, inks, mining
and plastics.
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