PITTSBURGH, Sept. 5 /PRNewswire/ -- The Bayer Group, based in Leverkusen,
Germany, plans to purchase the paper sizing and strength businesses of the
U.S. specialty chemicals manufacturer Cytec Industries Inc. (NYSE: CYT), of
West Paterson, N.J., for approximately $90 million. An agreement to this
effect has been signed by the two companies.
According to Dr. Richard Pott, General Manager of Bayer's worldwide
Specialty Products Business Group, the acquisition "will provide our customers
with the latest technology. At the same time, it will strengthen our global
position in paper sizing agents and broaden the product portfolio of Bayer's
Paper Industry Business Unit."
"The Cytec business complements our strong U.S. market position in
colorants and optical brighteners," said Helge H. Wehmeier, President and CEO
of Bayer Corporation. "We're now enhancing our business to include Cytec's
wide range of paper chemicals products."
The NAFTA region accounts for some 65 percent of Cytec's paper chemicals
sales. The acquisition is subject to the approval of Bayer's Supervisory
Board and the relevant regulatory authorities.
Under the terms of the agreement, Bayer will acquire Cytec's U.S.
$85 million paper sizing and strength businesses including patents, technical
expertise and marketing operations worldwide. Cytec will continue to own the
plants and will manufacture the products under contract with Bayer.
The Bayer Group is a diversified, international chemicals and health care
company, offering a wide variety of products and services from its Health
Care, Agriculture, Polymers and Chemicals business segments. In 1999, Bayer
employed a worldwide workforce of 120,000 and recorded sales of EUR
27.32 billion.
The Paper Industry Business Unit is part of Bayer's Specialty Products
Business Group, which employs some 3,800 people and posted sales of EUR
1.15 billion in 1999, up 3 percent from the previous year. Sales in the first
half of 2000 increased by 12 percent. The Specialty Products Business Group
belongs to Bayer's Chemicals segment.
Bayer Corporation, a member of the worldwide Bayer Group, is a research-
based company with headquarters in Pittsburgh. It has major businesses in
health care and life sciences and chemicals. The company had 1999 sales of
$8.9 billion and employs approximately 22,200 people. Bayer Corporation is
investing $9 billion in capital expenditures and research and development from
2000 through the year 2004. 2000 capital investment and R&D expenditures are
projected to total $1.6 billion.
Cytec Industries (NYSE: CYT) is a specialty chemicals and materials
technology company with 1999 sales of $1.4 billion. Its growth strategies are
based on developing technologically advanced customer solutions for global
markets, including aerospace, plastics, industrial coatings, mining, and water
treatment. Cytec is in the S & P mid-cap 400 index.
SOURCE Bayer Corporation
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CONTACT:
Mark A. Ryan of Bayer, 412-777-2500, or fax,
412-777-3899, or mark-a.ryan.b@bayer.com
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