Belgium/Germany: Speciality Chemicals BASF Acquires Solvay's Polyamides Business
Solvay announced that BASF agreed to acquire its Polyamides business for € 1.6 billion (approx. $ 1.92 billion).
Brussels/Belgium — The transaction covers Solvay’s upstream and downstream polyamides business in Europe, North America and Asia, as well as the downstream engineering plastics business in Latin America and involves around 2,400 employees. The company will retain its upstream intermediates and downstream textile polyamide business in Latin America.
Under the proposed terms of the agreement, the transaction is based on an enterprise value of € 1.6 billion, which represents ~8 Ebitda of 2016 and ~7 Ebitda in the last twelve months. The expected net cash proceeds are estimated to be around € 1.1 billion ($ 1.32 billion).
According to the Belgium-based company, its Polyamides business has grown profitability over the past years. Its activities range from upstream intermediates and polymers, to downstream with the development of high value-added engineering plastics.
The polyamide business planned to be divested will be reclassified to assets and liabilities held for sale and discontinued operations at the end of September.
The execution of definitive agreements is expected in the coming months following consultation with the relevant social bodies. The companies aim to close the transaction in the third quarter of 2018, after customary regulatory approvals have been obtained and the formal consent of a Joint Venture partner has been received.