Kik Custom Products Inc. is buying Chemtura Corp.’s (NYSE: CHMT) consumer products business for $315 million.
The consumer products business includes household cleaners, pool products and manufacturing plants in the U.S. and South Africa.
Kik, headquartered in Concord, Ontario, makes shampoos, soaps, body lotions, sunscreens and other consumer products.
Proceeds from the consumer products business sale will be used to pay down debt and return capital to shareholders. The company is also considering selling its agrochemicals business and has already received several offers, it says in a release.
The sales will allow Philadelphia-based Chemtura to focus on its chemicals business. As of now, the company makes specialty chemicals, agrochemicals and pool, spa and home care products. In May, the company purchased a 50 percent stake in DayStar Materials LLC, a South Korean company that makes chemicals for LED products, to gain complete ownership of the company. The company sold off its antioxidant and ultra-violet stabilizer business for $200 million in November.
Morgan Stanley & Co. LLC is Chemtura’s financial adviser, while Debevoise & Plimpton LLP is providing legal advice.