UCB has signed an agreement to sell its Surface Specialties business to Cytec Industries Inc. for l1.5 billion. The sale is expected to be concluded by the end of December.
Through its acquisition of Solutia’s coating resins, additives and adhesives activities, Surface Specialties has built a leading position in these areas. The company has production facilities located on three continents, four R&D centers, 10 technical service centers and commercial operations worldwide employing approximately 2,900 people. The present organization and facilities of Surface Specialties are expected to remain the same, including the division’s worldwide headquarters in Brussels. Ben Van Assche, the current CEO of Surface Specialties will remain in charge of the division and will be elected corporate officer and appointed a member of the Cytec executive committee.
“The acquisition of UCB’s Surface Specialties business will provide us critical mass and an excellent position to service the coatings markets with a broad range of resins and additives as well as technical resins serving a wide range of other target markets,” said David Lilley, chairman, president and CEO of Cytec.
According to Phil Phillips, of Chemark Consulting Group, the $1.8 billion acquisition is monumental if it makes it through FTC and the European Union hurdles. “The push-back by end-user segments of melamine curing resin-containing coatings such as automotive, could have a stalling effect that could curtail the whole deal,” said Phillips.
Chemark estimates the melamine resins share of market of the combined companies will be more than 90%, enough to warrant attention from these agencies.
“Otherwise, when it comes to the various urethane, epoxy and various types of curatives, we see very little concern from these agencies,” he said.