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Specialty materials and chemicals company Cytec Industries Inc. (CYT - Snapshot Report) has closed its earlier announced divestiture of its coating resins business to leading private equity firm, Advent International, for roughly $1.13 billion. The price includes assumed liabilities of roughly $118 million.  

The coating resins business, which is based in Brussels, Belgium, has operations throughout Europe, the U.S. and Asia. It makes and markets synthetic resins used for the production of paints, coatings and printing inks. Its offerings include liquid coating resins, radiation-cured resins, powder coating resins and crosslinkers.

The coating resins business is one of the leading makers of coating resins with a vast product portfolio and leading market and technology positions. Following the divestiture, it has emerged as an independent company and will adopt a new brand name in the coming months.

The divestiture marks the transformation of Cytec’s portfolio and allows it to focus on its high-growth areas comprised of advanced materials and separation technologies, and deliver higher returns to its shareholders.

Cytec expects to use a major portion of the after-tax proceeds from the sale to fund its share buyback program, which it expects to compete by mid-2013. Cytec’s Board, in Oct 2012, approved the repurchase of an additional stock worth $452 million, increasing the total buyback authorization to $650 million.

Cytec currently retains a short-term Zacks Rank #3 (Hold).

Other companies in the chemical industry worth considering are Olin Corp. (OLN - Snapshot Report), Akzo Nobel NV (AKZOY) and Axiall Corporation (AXLL - Snapshot Report). While Olin holds a Zacks Rank #1 (Strong Buy), both Akzo Nobel and Axiall retains a Zacks Rank #2 (Buy).

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