Henkel has entered into a definitive agreement to purchase Cytec Industries' pressure sensitive adhesives (PSA) product line for $105m in cash, including working capital of approximately $15m.
PSA technologies in the sale include Gelva GME and Ucecryl emulsion-based PSAs, Gelva GMS and Solucryl solvent-based PSAs and Gelva GMR UV-curable PSAs.
Jean Fayolle, Henkel packaging adhesives business senior vice president, said: "The product range to be acquired is complementary to Henkel's well established high-performance PSA business and is expected to strengthen our position in this field."
Cytec Industries chairman, president and chief executive officer Shane Fleming said the sale enables the company's portfolio transformation to drive a greater amount of organic and inorganic growth from its specialty growth platforms.
"We continue to make meaningful progress with our ongoing evaluation of the remaining Coating Resins business and are on track to announce our decision this quarter," Fleming added.
PSAs are used by packaging, automotive, electronic, durable goods and medical industries for foils and films, tapes or labels, graphics and transdermal medical applications. The transaction is expected to close in the third quarter of 2012 and is subject to customary closing conditions. Cytec said the full year 2011 sales for its PSA product line were $94m.
Image: Henkel's headquarters in Scottsdale, Arizona, US. Photo: Cygnusloop99.