Cytec Acquires BP Carbon Fibers
WEST PATERSON, N.J. - Cytec Industries Inc. (NYSE:CYT) announced today that it has signed a Definitive Agreement to acquire the assets of the carbon fiber business of BP.
The acquisition includes two manufacturing sites in Greenville, SC and Rock Hill, SC. The transaction is subject to normal closing conditions. Terms were not disclosed.
The BP carbon fiber business had sales in the first half of 2001 of $17 million of which 50% were sales to Cytec Fiberite Inc., a wholly owned subsidiary of Cytec Industries Inc., primarily for aircraft brake and military aircraft applications.
Cytec Fiberite uses carbon fiber to reinforce an engineered resin matrix and produce a composite. Commercial and military aircraft manufacturers are increasingly replacing metal in aircraft with composites to achieve the same strength with less weight.
David Lilley, Chairman, President and Chief Executive Officer said, "Cytec Fiberite is a global leader in advanced composites and structural film adhesives for the aerospace industry. Our acquisition of this business is important to ensure that Cytec has a high-quality, low-cost, uninterrupted supply of carbon fiber for its customers.
"As a producer of carbon fiber, Cytec's materials scientists can now work even more closely with our customers to rapidly develop and qualify new, high performance composite materials for aerospace and other emerging high growth applications.
"Completion of this transaction in approximately 40 days is expected to be slightly dilutive to our 2001 normalized earnings per diluted share objective of $2.05 to $2.15. We expect that this acquisition will be modestly accretive to Cytec's earnings per share in 2002," Mr. Lilley concluded.
Cytec Industries Inc. and Cytec Fiberite Corporate Profiles
Cytec Industries is a specialty chemicals and materials technology company with sales in 2000 of $1.5 billion and diluted earnings per share of $2.85 (excluding special items). Its growth strategies are based on developing technologically advanced customer solutions for global markets, including: aerospace, plastics, industrial coatings, mining, and water treatment.
Cytec Fiberite with 2000 sales of $412 million is a global technology leader in aerospace composites and structural film adhesives. These products are replacing metal and other materials on aircraft to reduce their weight and operating costs, while increasing aircraft performance. Cytec Fiberite's technology portfolio is qualified in all sectors of the aerospace industry. This includes large commercial airliners, regional and business jets, military aircraft, aircraft brakes, satellite and launch vehicles, and high performance automobile applications.
BP Corporate Profile
BP is one of the world's largest petroleum and petrochemicals companies with chemical sales in 2000 of $11.2 billion.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.