Cytec Industries Inc. has announced that 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 said: "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 Gelvar GME and Ucecrylr emulsion-based pressure sensitive adhesives, Gelvar GMS and Solucrylr solvent-based PSA's, and Gelvar GMR UV-curable PSAs. 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.