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ICI Agrees Sale of Vinamul Polymers Business for $US208m

Published on 2004-11-24. Author : SpecialChem

ICI has agreed to sell the US, Canadian and European Vinamul Polymers business ("Vinamul") of National Starch and Chemical Company ("NSC") to Celanese ("Celanese") for US$208 million (£112m) in cash.

Net proceeds after tax and other costs are expected to be approximately US$157m (£85m), and will be used to reduce ICI's net debt. Completion is expected in the first quarter of 2005, subject to regulatory approvals and employee consultation.

The transaction is consistent with ICI's strategy of focusing its resources on activities within the Group which have the greatest potential for profitable growth.

Vinamul is a supplier of emulsion polymers for the adhesives, paper, nonwovens, textiles and building products industries. Its product line includes vinyl acetate homopolymer and copolymer, ethylene/vinyl acetate, acrylic and vinyl acrylic emulsions.

The business employs some 600 people who will transfer to Celanese. Following the transaction Celanese will become a supplier of emulsion polymers to NSC, and NSC's purchases of vinyl acetate monomer ("VAM"), products related to VAM, and products derived from VAM will be significantly reduced.

For the year ended December 31, 2003 Vinamul had sales of £205m, of which £59m were internal sales to other NSC and ICI businesses. Operating profit was £11m and, as at December 31 2003, the business had net assets of £95m. The transaction is expected to give rise to a profit after tax of about £5m, excluding recycling of £140m of previously written off goodwill.

ICI is a global leader in creating, developing and marketing ingredients for foods and personal care, adhesives, specialty polymers, electronic materials, fragrances and flavours, as well as decorative materials. Products made by ICI are the vital ingredients that add value to its customers' products and processes. The group also owns some of the world's top paint and decorative product brands such as 'Dulux', 'Glidden', 'Valentine', 'Coral', 'Alba', 'Xyladecor', 'Hammerite', 'Polycell', 'Polyfilla' and 'Alabastine'.

ICI's strategy is to develop its position as a genuine leader in formulation science. The Group is focusing on substantial performance improvements through differentiated resource allocation, improving cost and capital effectiveness, and delivering operational excellence. Listed on both the London and New York Stock Exchanges, ICI is a member of the FTSE 100, FTSE 4 Good and the Dow Jones Sustainability Index.

ICI has around 34,000 employees worldwide and had sales in 2003 of £5.8billion.

Source: ICI


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