Specialty chemicals and materials supplier Cytec Industries (Tempe, Arizona / USA; www.cytec.com) has agreed to buy advanced composite materials provider Umeco (Leamington Spa / UK; www.umeco.com) for GBP 274m (EUR 334m). The all-cash offer of GBP 5.5 (EUR 6.7) per Umeco share has the backing of both companies’ boards, and represents a 46% premium on the closing price on 11 April, the day before the deal was announced. Cytec says the transaction will enhance its position as a technology leader in advanced composite materials and expand its presence in both aerospace and industrial applications.

Umeco had revenues of GBP 207m (EUR 252m) in the year to 31 March 2011. Its activities are divided into two businesses. Whereas the Structural Materials unit focuses on the development, manufacture and supply of advanced composite materials, Process Materials is dedicated to the development, manufacture and supply of processing materials for the composites industry. Group companies include composite materials supplier GRPMS (Fareham / UK; www.grpms.com) and high performance pre-preg manufacturer Advanced Composites Group (ACG, Heanor, Derbyshire / UK; www.advanced-composites.co.uk) – see Plasteurope.com of 27.06.2011.

Commenting on the Umeco deal, Cytec president, chairman and CEO Shane Fleming said, “The acquisition of Umeco will provide us with additional scale, a dedicated supply chain well-tailored to the needs of the high performance industrial sector and application development capabilities that will help us respond quickly and effectively to customers’ needs.” It will also, he added, boost Cytec’s current composites capacity whilst it completes capital investment programmes over the next few years.

On completion of the transaction – expected to be forthcoming in Q3 this year – Cytec will organise the combined assets into two separate reporting segments. The advanced materials business will be integrated into a newly-created High Performance Industrial Materials segment that will focus on non-aerospace growth markets. Cytec’s Engineered Materials segment will continue to concentrate on aerospace growth opportunities. Cytec’s existing Coating Resins and Additive Technologies business units are expected to remain unchanged by the purchase, although the company has tasked J.P. Morgan with finding a buyer for the former, USD 1.5 bn division.