SHANGHAI, Jan. 18 -- Chemtura, one of the world's leading tin chemicals companies, has entered an agreement to sell its PVC additives business, with SK Capital the lead bidder. The company's US operations are currently under Chapter 11 protection and the deal is subject to approval by the United States Bankruptcy Court. According to Compounding World, a court-approved auction will now take place, but if there are no higher bidders, then SK Capital is committed to complete the purchase. The New York-based private equity firm focuses on the specialty materials, chemicals and healthcare industries.
Chemtura's PVC additives business had revenues of US$374 million in 2008 and US$177 million in the first nine months of 2009. It has its own manufacturing plants and toll production agreements in North America and Europe. The deadline for other bids is 9 February. If any are received an auction will be held on 22 February. Chemtura, which was formed in 2005 by the merger of Crompton and Great Lakes, filed for bankruptcy protection of its US operations in March 2009. In a recent announcement, the company said that it planned to emerge from Chapter 11 in the summer of this year.