31 October 2006 – Polymer additives giant Chemtura has sold its majority interest in extruder maker Davis-Standard to the current joint owner of the business, private equity firm Hamilton Robinson for $72m plus a further $8m dependent on post completion.
Headquartered in Pawcatuck, Connecticut, Davis-Standard turned over some $250m for the year to the end of September and is a leading supplier of extrusion systems. The business has a range of subsidiaries including screw and barrel specialist D-S Brookes in the UK and die and feedblock maker Er-We-Pa in Germany.
Robert Wood, Chemtura chairman and ceo, said the deal is in line with the group’s strategy of focusing on core businesses. Forming the initial joint venture with Hamilton Robinson had led to the company ultimately realising a higher sale price, he noted. The proceeds from the sale will be used to strengthen Chemtura’s speciality chemicals business as well as reduce debt at the group, formed from the merger of Crompton and Great Lakes Chemical.
However Wood is warning that the third quarter and second half results will be below expectations despite aggressive restructuring measure because, ”our earnings have not yet caught up with our actions,” he says.
