MIDDLEBURY, Conn. (Nov. 3) — Chemtura Corp. said it has signed a letter of intent to sell its EPDM business and the rubber chemicals businesses at its Geismar, La., plant, as well as its worldwide Flexzone antiozonants unit.
Chemtura did not name the company it is negotiating with, but said it expects to sign a definitive agreement by the end of the year. The transaction is subject to regulatory approvals and Chemtura plans to use proceeds to reduce debt.
The EPDM and rubber chemicals businesses being sold had sales for the year ended Sept. 30 of about $300 million.
The sale is part of Chemtura´s plan to divest non-core assets and businesses, said Chairman and CEO Robert L. Wood. "We are pleased to be transferring these businesses to a buyer who is interested in growing them, which should benefit our customers," he said.
Chemtura also just completed the sale of its 60-percent interest in machinery supplier Davis-Standard L.L.C. to an investor group led by management and private equity firm Hamilton Robinson L.L.C.