Mitsubishi Rayon to Acquire Lucite International for $1.6 billion
The Board of Lucite International Group Limited ("Lucite" or the "Company"), has announced that the Company is to be acquired by Mitsubishi Rayon Co., Ltd. ("Mitsubishi Rayon") for a total cash consideration of approximately $1.6 billion. The acquisition, which is subject to approval by the relevant regulatory authorities, is expected to be completed by the end of January 2009.
Lucite is the world's leading manufacturer of methyl methacrylate (MMA) and owner of the globally renowned Lucite® and Perspex brands®. The Company was formed from an amalgamation of the acrylics businesses of ICI and DuPont in 1993 and has been majority owned by the private equity investor, Charterhouse Capital Partners LLP, since 1999. Lucite owns the new low cost and proprietary MMA production route, known as Alpha technology. The Company has invested in the development of this new technology, which fundamentally changes the economics of MMA manufacturing, and the first Alpha plant has begun to manufacture MMA in Singapore in the last few days and will be fully operational by the end of this year.
The acquisition will make Mitsubishi Rayon the global leader in this market and confirms its position as the leading acrylics manufacturer in the fast growing Asian markets. The acquisition will lift Mitsubishi Rayon’s annual sales to approximately ¥600 billion, putting it well on the way towards achieving its target of ¥1 trillion annual sales. In the year ended 31 December 2007, Lucite generated revenues of £849 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of £114 million.
