Kraton Corp. has initiated a strategic review into its Cariflex business which might result in the sale of the unit, the company announced 19 Feb.
The Cariflex business produces polyisoprenes for healthcare applications, including surgical gloves and various medical devices.
Products are claimed to be “superior” alternatives to natural rubber as they are free of naturally-occurring proteins.
“We believe that the high-margin Cariflex business and its attractive growth prospects are not appropriately valued as part of Kraton,” said Kevin Fogarty, Kraton's president and CEO.
Selling off the business would enable Kraton to focus more on its core business segments, the company said.
“Cariflex for the most part is a standalone business at Kraton, with minimal revenue or cost overlap with our polymer and chemical segments,” Fogarty added.
The company would use most of the proceeds from any full or partial ‘monetisation' of Cariflex to reduce debt.
Kraton, however, underscored that the strategic review might not result in a transaction.