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(Sharecast News) - Chemicals business Synthomer has agreed to divest William Blythe, its inorganic chemistry business, to its management team and H2 Equity Partners for 30.0m.
Synthomer said on Tuesday that the sale of William Blythe, which was conditional on certain customary closing conditions, was expected to complete at the end of May, with net proceeds of the disposal to be used to reduce net debt.
The London-listed firm noted that William Blythe was part of its health and protection and performance materials unit and was designated as non-core following a strategic review launched back in October 2022.
Chief executive Michael Willome said: "Today's announcement recognises William Blythe's unique attributes and strong performance over many years as part of Synthomer. At the same time, the business has limited synergies with the rest of the group and its divestment will further reduce the complexity of our site portfolio and enhance our focus on higher value, higher growth speciality chemicals markets where we have strong and sustainable leadership positions.
"With the divestment to the ambitious management team backed by H2 Equity Partners, I am confident this is a win-win transaction for all involved and wish all our William Blythe colleagues well for the next exciting chapter in its long history."
As of 0815 BST, Synthomer shares were up 0.75% at 93.70p.
Reporting by Iain Gilbert at Sharecast.com
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