ICI will sell Vinamul polymers business to Celanese

ICI will sell its US, Canadian and European Vinamul polymers business to Celanese for $208m (E158m). Net proceeds after tax – expected to be approximately $157m (E119m) – will be used to reduce ICI's net debt.

ICI said the transaction was consistent with its strategy of focusing on activities with the greatest potential for profitable growth. Completion is expected in the first quarter of 2005, subject to regulatory approvals and employee consultation.

Vinamul’s 600 employees will transfer to Celanese. For the year ended 31 December, 2003 Vinamul had sales of Ј205m (E283m), operating profit was Ј11m (E16m) and the business had net assets of Ј95m (E136m). The transaction is expected to give a profit after tax of about Ј5m (E7m), excluding recycling of Ј140m (E200m) of previously written off goodwill, according to ICI..

Vinamul supplies emulsion polymers for the adhesives, paper, nonwovens, textiles and building products industries. Its product line includes vinyl acetate homopolymer and copolymer, ethylene/vinyl acetate, acrylic and vinyl acrylic emulsions.