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Fujifilm Electronics to purchase Arch Chemicals share in CMP slurry business |
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Nov 28, 2005 at 07:28 PM |
Arch Chemicals, has signed a definitive agreement to sell its 50
percent share in Planar Solutions, a joint venture in chemical
mechanical planarization (CMP) slurries, to FUJIFILM Electronic
Materials U.S.A., Inc., a U.S. subsidiary of Fuji Photo Film Co., Ltd.,
for approximately $17 million. Planar Solutions was set up in 2000 as a
50-50 joint venture between Arch Chemicals and Wacker Chemical.
"This divestiture supports our strategy to focus our business portfolio
and to redeploy resources to pursue growth opportunities in our key
growth platform, Treatment Products. We will use proceeds from this
sale to reduce our debt and to strengthen our balance sheet, giving us
additional flexibility to pursue possible complementary acquisitions,"
said Arch Chemicals' Chairman, President and CEO Michael E. Campbell.
The deal consists of $10 million in cash and the assumption of
approximately $7 million of guarantees of the joint venture's debt. The
transaction has been approved both by companies Board of Directors.
The Company expects to record a pretax gain of approximately $10
million on this transaction. Net proceeds from the sale will be used to
pay down debt. The Company reported equity in earnings of $0.5 million
for the nine months ended September 30, 2005 for its share in Planar
Solutions.
Planar Solutions had $25.8 million in sales in fiscal 2004.
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