Solvay acquire Rhodia € 3.4 billion in all cash deal

Solvay to acquire Rhodia for € 3.4 billion in all cash deal

11:19 AM, 5th April 2011
Solvay to acquire Rhodia for € 3.4 billion in all cash deal
(L) Christian Jourquin, CEO, Solvay and Jean-Pierre Clamadieu, CEO, Rhodia at a press conference. (C) AFP Photo.

 

BRUSSELS, BELGIUM/PARIS, FRANCE: Solvay has agreed to acquire Rhodia for € 3.4 billion in an all cash deal. As per agreement, Solvay will launch a friendly cash offer for Rhodia at € 31.60/share, which will be a 50 per cent premium over Rhodia’s closing price on April 1. The offer represents a multiple of 7.3 times recurring EBITDA (REBITDA) and it has been recommended unanimously by Rhodia’s board. The deal has an enterprise value of € 6.6 billion. Solvay expects that the offer will be closed by late August 2011.

 

The companies plan to create a large global chemical company. The new group’s strategy is based on the following strengths: 90 per cent of its combined sales of  12 billion are realized in businesses where it is already among the top three worldwide. Future geographic expansion will be driven by a significant presence in the emerging markets, which already generate 40 per cent of sales of the combined group.

 

To facilitate a smooth integration, Jean-Pierre Clamadieu, Chairman and CEO of Rhodia, will join Solvay’s executive committee in the role of Deputy CEO. Clamadieu is also intended to succeed Solvay’s current CEO Christian Jourquin upon his retirement. In addition, Gilles Auffret, COO of Rhodia, will be appointed CEO of Rhodia and member of the executive committee of Solvay.

 

“We are proud to announce this proposed friendly business combination. This will help us in doubling our REBITDA to almost  2 billion and creating a major global chemicals platform,” said Christian Jourquin, CEO, Solvay.

 

“This project will accelerate the overall development of our business, capitalizing on a strong financial structure, our leadership positions and an exceptional geographic footprint,” said Jean-Pierre Clamadieu, Chairman and CEO, Rhodia.

(C) Solvay and Rhodia News

 

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