August 22, 2013 09:41AM
By Andrew Ragali
WALLINGFORD — Cytec Industries’ location in Wallingford has come under new ownership, bringing a new name for the facility though few other immediate changes for employees.
The production facility at 528 Cherry St., which specializes in coating resins, was acquired by Advent International, according to a statement from Allnex, formerly known as Cytec Coating Resins.
Allnex, which was part of Cytec Industries before the sale, branded itself as a leading supplier in resins, additives and specialty materials used for architectural, industrial, protective and automotive applications. About a year ago, Cytec decided to divest in its coating resin business, according to Tom Kelly, regional vice president of the Americas for Allnex.
“It’s very good business,” Kelly said, “but it’s just not the direction they’re looking for.”
Advent International is a global private equity firm based in Boston that invests exclusively in mid-market buyouts and selective growth capital investments. Specifically, the Wallingford Cytec Industries plant was purchased by a division of Advent called AI Chem and Cy US AcquiCo. According to a property transfer filed with the town, the property sold for $7.8 million.
While new ownership brings title changes, “it really doesn’t represent significant change in how we’re operating,” Kelly said. “Perhaps it’s a good thing. The new owners are committed to letting us grow.”
The Wallingford plant and its employees will remain, he said, and its new owners are “encouraging us to grow the business and do things better and faster.”
With the buyout by Advent International, several Cytec production plants across the country will change hands, Kelly said.
“The sale of Coating Resins marks the completion of the transformation of Cytec’s portfolio and the beginning of a new Cytec,” said Shane Fleming, the company’s chairman, president, and chief executive, in a statement. “We are now able to focus on our growth platforms comprised of advanced materials and separation technologies. We are excited about the future of our company and the ability to drive long-term growth and greater returns to our shareholders.”
“I would like to thank the employees in the coating resins organization for their dedication and hard work to improve the business performance and for their continued focus and discipline during the divestiture process,” Fleming said. “I wish them well and continued future success.”
Cytec employs about 150 people at the Wallingford plant.