Baxenden Chemicals Ltd

Baxenden Chemicals Limited

News

Chemtura Increases Ownership

Chemtura Increases Ownership of Baxenden Chemicals to 100 Percent
MIDDLEBURY, Conn., Mar 03, 2008 (BUSINESS WIRE) -- Chemtura Corporation (NYSE: CEM) announced today that it has acquired the stock of Baxenden Chemicals Limited owned by Croda International Plc. in an all-cash transaction for GBP 13 million, increasing its ownership to 100 percent. Chemtura previously held 53.5% of Baxenden's stock.
Baxenden, a world leader in polyurethane technology, has 212 employees and had 2007 revenues of approximately $70 million. Baxenden has manufacturing facilities in Accrington and Droitwich, UK.

"Full ownership of Baxenden will permit better utilization of the complementary technology and manufacturing experience of our businesses and will result in offering our customers a broader portfolio of products, technology and service. While we evaluated selling this joint venture, we determined that full ownership would create much more value through the integration of Baxenden's and Chemtura's broad capabilities," said Robert Wedinger, chief business officer for Chemtura and group president of Chemtura Performance Specialties, which includes the urethanes business.

"Baxenden has strong technology platforms that dovetail with Chemtura's existing high-performing urethanes business. We see exciting growth potential for their polyurethane dispersion (PUD) products, specialist polyurethane prepolymers, and blocked isocyanate products and expect Baxenden to benefit from the global growth opportunities which now will be available as part of Chemtura," Wedinger said.

Lazard (www.lazard.com) acted as financial adviser on the transaction.

Chemtura Corporation, with 2007 sales of $3.7 billion, is a global manufacturer and marketer of polymer additives, performance specialties, consumer products and crop protection products. Additional information about Chemtura is available at www.chemtura.com. Information about Baxenden is available at http://www.baxchem.co.uk/.

Forward-Looking Statement

This document includes forward-looking statements. These forward-looking statements are identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will" and similar expressions and include references to assumptions and relate to our future prospects, developments and business strategies.

Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to:

-- General economic conditions.

-- Significant international operations and interests.

-- The ability to obtain increases in selling prices to offset increases in raw material and energy costs.

-- The ability to retain sales volumes in the event of increasing selling prices.

-- The ability to absorb fixed cost overhead in the event of lower volumes.

-- Pension and other post-retirement benefit plan assumptions.

-- The ability to recover lost volume in our non-flame retardant Plastic Additives business or execute other portions of the recovery plan for this business.

-- The ability to sustain profitability in our Crop Protection business due to new generic competition, or the failure to secure new products and technology.

-- The ability to sell methyl bromide due to regulatory restrictions.

-- Energy and raw material prices, availability and quality.

-- Production capacity.

-- Changes in interest rates and foreign currency exchange rates.

-- Changes in technology, market demand and customer requirements.

-- The enactment of more stringent environmental laws and regulations.

-- The ability to realize expected cost savings under our cost-reduction initiatives, including Six Sigma and Lean manufacturing.

-- The ability to successfully execute our portfolio divestiture plan.

-- The ability to reduce our indebtedness levels.

-- The ability to recover our deferred tax assets.

-- The ability to remain compliant with our debt covenants or obtain necessary waivers.

-- Other risks and uncertainties detailed in Item 1A.Risk Factors or in our filings with the Securities and Exchange Commission.

These statements are based on the Company's estimates and assumptions and on currently available information. The forward-looking statements include information concerning the Company's possible or assumed future results of operations, and the Company's actual results may differ significantly from the results discussed. Forward-looking information is intended to reflect opinions as of the date this press release was issued and such information will not necessarily be updated by the Company