KIK Wraps Up Buy of Chemtura Consumer Products
Canada's KIK Custom Products has completed its acquisition of the consumer products division of U.S. specialty chemicals producer Chemtura for an adjusted price of $300 million. Initially a price of $315 million had been agreed. Chemtura's board of directors had approved the sale in September 2013.
The companies said the price adjustment in the deal that included assets in manufacturing plants in the U.S. and South Africa, was related to a post-closing agreement that reflected working capital parameters and assumed pension liabilities.
Chemtura CEO Craig A. Rogerson said his company is now better positioned to deliver growth in the faster-growing regions, and in a stronger position to meet its commitment to achieve adjusted EBITDA margins approaching 20%. He said Chemtura expects to return a "substantial portion" of the proceeds to shareholders, as well as paying down sufficient debt to preserve its leverage ratios prior to the sale.
One of North America's largest contract and private label manufacturers of consumer, institutional and industrial products, following the acquisition KIK has 16 integrated plants in North America as well as the South African unit. Products include bleach, household cleaners and sanitizers, pool and spa water treatment, personal care, over-the-counter medications and pharmaceutical products.
