AIR PRODUCTS has announced its desire to sell its Amines and Polymers businesses and buying a speciality surfactants company.
The company is making a series of strategic initiatives to strengthen and expand its growth platforms, improve its return on capital and return value to its shareholders.
According to the company these actions will enable it to further sharpen its focus on its four growth platforms: energy and process industries, electronics, homecare, and performance materials, as well as its position in the Asian region.
'When these actions are completed, our growth businesses will make up over 60 per cent of our overall annual revenues, up from just 35 per cent in 2000. We are convinced that this new profile, combined with our number one priority to improve our return on capital, will deliver significant shareholder value going forward.'
Exploring sale of Amines and Polymers businesses
Air Products is exploring the sale of its Amines and Polymers businesses as part of the company's ongoing portfolio management activities.
'We have significantly improved our Amines and Polymers businesses over the past few years. However, additional investment in these businesses doesn't fit with our strategic direction. Potential buyers have expressed interest and we believe now is the right time to explore all opportunities,' according to Jones.
'For the right owner, these are very attractive investments. However, we will only sell these businesses to a buyer who recognizes their value.'
The Amines business generated approximately $300 million in revenues in FY2005. The consolidated Air Products Polymers joint venture with Wacker Chemie AG of Germany had approximately $550 million in FY2005 revenues with six manufacturing facilities.
Air Products has signed a definitive agreement to acquire Tomah3 Products of Milton, Wis., for approximately $115 million in cash. With sales of $73 million in 2005, Tomah produces speciality surfactants and processing aids primarily for growth segments of the institutional and industrial cleaning, mining and oil field industries, among others. The agreement is subject to regulatory approval and is expected to close by the end of March.