Lion Capital to buy Chemtura's EPDM business

Middlebury, Connecticut -- Chemtura Corp. has announced that Lion Chemical Capital, LLC is the potential buyer of the company's EPDM business and the Rubber Chemicals businesses associated with Geismar, Louisiana as well as Flexzone antiozonants worldwide. The letter of intent was signed and announced on 2 Nov. The companies expect that a definitive agreement will be completed by year-end.

Chemtura is selling EPDM and Rubber Chemicals in order to focus more intently on its core businesses.

Lion bought DSM's Copolymer business at the end of October 2005. It re-named the business Lion Copolymer LLC on 1 November 2005.

“We are very happy to be selling these businesses to a company for which they will be core and strategic,” said Chemtura Chairman and CEO Robert L. Wood. “We believe this will be beneficial for our customers.”

Lion plans to merge the two businesses into its existing Lion Copolymer business, located in Baton Rouge, Louisiana. Lion Copolymer is a leading manufacturer and marketer of SBR, but has no involvement in rubber chemicals or EPDM.

Lion Chemical Capital is a private equity firm that says it targets undervalued assets in the less cyclical segments of the chemical and affiliated industries. It is run by Peter and David De Leeuw. Peter was formerly CEO of Sterling Chemicals, a $1200 million producer and marketer of petrochemicals. David was a founding partner at McCown & De Leeuw & Co., a private equity firm focusing on middle market leveraged buyouts

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