Umeco to be sold to rival

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Specialty chemicals maker Cytec Industries has made an offer valued at about £275m for aerospace parts supplier Umeco, in an attempt to build on its advanced composites businesses.

The offer of 550p per Umeco share represents a premium of about 46 per cent to Umeco stock’s closing price on Wednesday.

Cytec’s chief executive Shane Fleming said: “The acquisition greatly improves our composite presence in the industrial sector.

“The acquisition also enhances our near-term composite capacity while we complete capital investments.”

The boards of directors of both companies have unanimously approved the transaction.

Cytec said it had received commitments from Umeco’s top three shareholders, BlackRock, Hermes and Aberforth to vote in favour of the deal.

Umeco, which counts Boeing, Airbus and BAE Systems among its customers, also make composite materials for Formula One racing cars. The company employs around 50 staff at its process materials Aerovac factory in Keighley, West Yorkshire.

The acquisition, which would be financed using cash on hand, was expected to immediately add to Cytec’s earnings.

Cytec also forecast adjusted earnings per share for its first quarter to be between 45 per cent and 50 per cent above the current market expectations.

Umeco’s shares jumped 44 per cent to 543p this morning.