Avecia to sell Biocides business

Avecia has signed a definitive agreement to sell its Biocides business to Arch Chemicals for approximately $215 million. The business had sales of approximately $137 million in 2003.

Dedicated manufacturing assets at Huddersfield, Grangemouth and Seals Sands in the UK, Mount Pleasant in the US, and a technical service laboratory in New Castle, Delaware in the US, will transfer to Arch as part of the sale.

Arch will also acquire commercial offices in Wilmington (Delaware), Tokyo, Sao Paulo and Frankfurt. The business' UK R&D centre, technical service laboratories and commercial offices will remain on the Avecia site in Manchester, England under a long term lease agreement.

In Belgium, Spain and Singapore, the business' commercial teams will continue to share office facilities under service agreements with the respective lease holders.

Approximately 290 employees worldwide will transfer to Arch upon completion of the sale.

Avecia is one of the world's top three producers of biocides operating in two key business sectors. Its Protection and Hygiene business develops and produces a range of products for use in applications covering industrial preservation, disinfection, plastics, textiles and personal care. While for its part, the company's Pool and Spa business is a developer of non-chlorine and bromine-free treatments for residential swimming pools, hot tubs and spas.

Net proceeds from the sale will largely be used to repay Avecia's bank debt.

The transaction is subject to regulatory and other customary closing conditions.