Umeco sale proceeds after EU all-clear

WARWICKSHIRE composite group Umeco’s sale to US speciality chemicals maker Cytec Industries has gone through.

The acquisition, for an estimated £274m, was given the all clear by European Commission competition chiefs last week allowing the deal to go through.

Cytec is looking to boost sales of composite materials to the aerospace industry  to offset slowing demand for its main product coating resins used in the housing and manufacturing sectors.

The European Commission said even though there were overlaps in the manufacture and supply of “prepregs” specialised materials and of some adhesives, this did not raise competition concerns.

New Jersey-based Cytec’s CEO Shane Fleming said: “We are confident the acquisition strengthens our position as a leading manufacturer of advanced composite materials and offers significant opportunities for growth and value creation.

“We are all committed to a successful integration of our businesses.”

Umeco shareholders gave their overwhelming support for the deal at the end of May. A general meeting of shareholders voted 99.96% in favour of the deal, which was announced in April.

Cytec has a UK operation based in Wrexham.