Chemtura [finally] sells Davis-Standard unit
Middlebury, Connecticut - Chemtura, the specialist chemicals company, has finally sold its extruder machinery business unit, Davis Standard. The new owner is Hamilton Robinson LLC, a private equity company to whom Chemtura sold a minority stake in Davis-Standard in April 2005. Management will own more than 20 percent of the company´s common equity, said Davis-Standard president Charles Buckley.
Hamilton Robinson has been building a business in polymer extrusion business over the last couple of years, having acquired the Merritt Extruder Corp. in August 2005 and Magnatech International, in April 2006. Magnatech specialises in the design and production of high-tech braiding and related parts used in the manufacture of high and medium pressure reinforced hose.
Hamilton Robinson paid around $72 million for Chemtura's stake in Davis-Standard, and could pay a further $8 million, depending on events following final closing of the deal. D-S, headquartered in Pawcatuck, Connecticut, had revenues for the fiscal year ended 30 Sept., 2006 of approximately $250 million.
Davis-Standard has stood out as the only machinery unit owned by Chemtura, or its predecessor, Crompton Corp. for many years. "This sale, as well as the sale of the Industrial Water Additives business earlier this year, is another positive step in transforming our portfolio to one that will deliver consistently higher earnings," said Chemtura's CEO, Robert Wood. "The proceeds from this transaction will be invested in our core specialty chemical businesses and further debt reduction as will proceeds from other transactions we expect to announce in the near future," he continued.
Davis-Standard, LLC has facilities in Pawcatuck; Somerville, New Jersey.; and Fulton, New York; as well as in Germany and the UK.
Press release from Chemtura
Website of Hamilton Robinson
Website of Davis-Standard