Chemtura Looks to Sell Off Agrochemicals Unit

Chemtura CEO Craig A. Rogerson

Chemtura Corp. said it is exploring the sale of its agrochemical business, Chemtura AgroSolutions as it moves to become a pure-play industrial specialty chemicals company.

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The company announced at the same time that it agreed to sell its consumer products business for $315 million in cash. 

Chemtura has retained Morgan Stanley & Co. LLC to act as its financial advisor in connection with the Chemtura AgroSolutions divestiture process. Debevoise & Plimpton LLP is acting as its legal counsel.

President and Chief Executive Craig A. Rogerson said, “A sale of Chemtura AgroSolutions at the right price would be a compelling opportunity to unlock significant value for our shareholders and a logical strategic step for Chemtura at this time. We recognize the strength of our agrochemicals business and its long-term prospects.” Rogerson said the company believes its current share price does not fully reflect its value, and it has received “credible unsolicited expressions of interest and the board has determined, consistent with its fiduciary duties, that this is the right time to invite and evaluate offers for the business. Importantly, while we think this may be a compelling financial opportunity, we will complete a sale only if we can realize an attractive value for the business.”

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Chemtura AgroSolutions, which is based in Philadelphia and operates in 120 countries, offers fungicides, herbicides, insecticides, miticides, plant growth regulators and seed enhancement products for select crops. The business generated about 17%, or $435 million of the company’s overall revenues of $2.6 billion and adjusted EBITDA of $89 million last year. Chemtura said the unit looks set to show year-on-year growth in operating income of approximately 15% for the third quarter.

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