Stepan Company (NYSE: SCL) announced today the sale of its Specialty Polyurethane Systems business ("KITS") to J6 Polymers, LLC. The 2014 net sales associated with this business were $2.8 million.
The sale was for cash and included inventory as well as customer and supplier lists, intellectual property, formulations, manufacturing procedures and all other information required to operate the business. The Company expects to report a pretax one-time gain of between $2.5 million and $3.0 million during the first quarter from the sale proceeds. Other terms of the agreement were not disclosed.
The products associated with this business are produced at the Company's Millsdale, Illinois facility and third party toll manufacturers. During a transition period, the products produced at the Company's Millsdale, Illinois facility will be toll produced for J6 Polymers, LLC.
"This transaction will allow our Polymer business segment to redeploy resources to further improve growth and innovation in our line of polyols for Coatings, Adhesives, Sealants and Elastomers (CASE) applications," said F. Quinn Stepan Jr., President and CEO of Stepan Company.
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