Chemtura sells rubber units for $162.5 million
Chemicals maker Chemtura Corp. said it has agreed to sell its EPDM business, most of its rubber chemicals operations and Flexzone chemicals business to Lion Chemical Capital LLC for $162.5 million, the Associated Press reports. The EPDM business—which stands for ethylene propylene diene monomer—encompasses Chemtura''s heat- and sun-resistant rubber products, which are used for hoses and weather stripping in autos. Combined, the EPDM and rubber chemicals operations had revenue of $300 million in the year ended Sept. 30, 2006. The deal will lower Chemtura''s 2006 and 2007 earnings slightly, the company said. The sale price also includes the sale of Chemtura''s stake in Chemtura-CNCCC Danyang Chemical Co. After the close of that transaction, which is subject to government approval, Lion will have full control of the company''s Danyang, China-based rubber chemicals venture. Chemtura said it will use proceeds from the divestiture to pay for its recent purchase of specialty lubricant maker Kaufman Holdings.