Stepan Company sells specialty PU systems business to J6 Polymers

Stepan Company has sold its specialty polyurethane (PU) systems business 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. 
 
Stepan Company expects to report a pretax one-time gain of between $2.5 million and $3 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 Stepan 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.
 
Stepan Company, which is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries, utilises a network of modern production facilities located in North and South America, Europe and Asia.