Cytec closes deal on Surface Specialties.

Cytec Industries has completed its acquisition of UCB's Surface Specialties business in a transaction valued at $1.79 billion. UCB now owns approximately 12% of the outstanding shares of Cytec, and has entered into a stockholders agreement which provides for UCB to reduce its stake within five years, and contains other customary terms and conditions.

In conjunction with this transaction, Cytec has agreed to divest Surface Specialties' amino resin product line in 2005, and to use the proceeds to reduce debt. Sales of Surface Specialties' amino resin product line in 2004 were approximately 123 million [euro].

"With this acquisition, Cytec becomes one of the world's leading suppliers of specialty chemicals to the coatings industry, and creates a combined Cytec entity of approximately $3 billion based on 2004 pro forma revenues excluding Surface Specialties' amino resin product line," said David Lilley, chairman, president and CEO, Cytec Industries. "This transaction complements Cytec's existing product lines by significantly increasing Cytec's product offering to the coatings industry, including the general industrial, automotive, architectural, plastics, graphic arts and wood end-markets."

Surface Specialties will operate as a separate segment and Cytec will integrate its existing coating and performance and chemicals product lines into this new segment, which will be headquartered in Brussels, Belgium. Ben Van Assche, formerly director-general of Surface Specialties, has been named president of Cytec Surface Specialties and will be elected an officer of Cytec and a member of its executive committee.