* Transaction for $105 mln in cash
* Deal seen to be neutral to Cytec’s 2012 adjusted profit
May 11 (Reuters) - Cytec Industries Inc will sell its self-adhesive business to German consumer goods company Henkel for $105 million in cash to focus on higher-margin specialty chemicals.
Cytec sold its pressure sensitive adhesives (PSAs) product line as it continues to reduce exposure to its highest revenue-generating segment, coating resins, due to slow demand in sectors such as housing and manufacturing, especially in Europe.
PSAs, which contributed $94 million to the company’s sales in 2011, are used for labels, signage, tapes, graphics and medical application.
Cytec is on track to announce its decision regarding its remaining coating resins business this quarter, Chief Executive Shane Fleming said in statement.
The deal, expected to close in the third quarter, will be neutral to Cytec’s adjusted profit in 2012, the company said in a statement.
Henkel Chief Executive Kasper Rorsted, who has turned the company around in his four-year tenure with his ambitious and results-driven management, on Thursday said he is looking to boost growth with acquisitions.
Cytec shares, which have gained 38 percent in the last six months, closed at $63.05 on Thursday on the New York Stock Exchange.