Solvay Completes Divestment of Polyamides
| Subj: Press-releses
Solvay has formally completed the divestment of its Performance Polyamides activities to BASF and Domo Chemicals.
This represents the last step in the transaction agreed between Solvay and BASF, for which the European Commission required to divest certain of Solvay’s performance polyamides assets to a third party.
The assets acquired by the third party, Domo Chemicals, include Solvay's performance polyamides production sites at Belle-Etoile and Valence (France), as well as a stake in a newly-created joint venture between BASF and Domo in Chalampé (France). They also involve production sites in Gorzow (Poland), Blanes (Spain) and commercial activities in Germany and Italy.
BASF will acquire all the Performance Polyamides activities of Solvay that are not acquired by Domo Chemicals and that are part of the original agreement between Solvay and BASF, signed at the end of 2017.
The transaction is based on an enterprise value of €1.6 billion and the net cash proceeds to be received on the combined transaction are estimated to be around €1.2 billion, subject to customary post-closing purchase price adjustments. More information will be made available with the release of the year-end results on February 26.
The closing of this transaction will allow Solvay to strengthen its recently-announced G.R.O.W. strategy, based on three core pillars -- Materials, Chemicals and Solutions -- each with a clear mandate.