Solvay acquire US-based Cytec $5.5 billion cash

Solvay to acquire US-based Cytec for $5.5 billion cash

5:47 AM, 29th July 2015
Solvay to acquire US-based Cytec for $5.5 billion cash
Jean-Pierre Clamadieu, CEO of Solvay. (File photo)

BRUSSELS, BELGIUM: Solvay SA said it has agreed to acquire US-based Cytec Industries Inc for $5.5 billion in cash or an enterprise value of $6.4 billion, including debt, valued at $75.25 per share in cash.

The acquisition is structured as a cash merger between Cytec and a subsidiary of Solvay and the transaction is expected to close in the fourth quarter of 2015.

Cytec’s composites businesses will be integrated into Solvay’s advanced materials operating segment. Its mining chemicals as well as its niche additives and phosphine specialty chemical businesses will become part of Solvay’s advanced formulations segment.

The transaction price per share represents a premium of 28.9 percent compared to the closing price of Cytec on 28 July.

“It is a unique opportunity for Solvay to boost its customer offerings in lightweighting with advanced materials in aerospace and automotive, as well as to strengthen its know-how with activities in mining chemicals,” said Jean-Pierre Clamadieu, CEO of Solvay.

“Solvay’s strategic focus is perfectly aligned with our businesses, while the technology synergies with their specialty polymers and formulations expertise should accelerate our growth. Our customers and our employees should expect to see continuity and strong support of our current strategy,” said Shane Fleming, CEO of Cytec.

Headquartered in New Jersey, US with 4,600 employees across the globe, Cytec generated sales of $2 billion. It sources almost half of its sales from North America, nearly a third from EMEA and the remainder from Asia Pacific and Latin America.

Cytec is among the world leaders in composite materials and in mining chemicals. In the fast-growing composite materials sector, which represents two thirds of its sales, its principal market is primary and secondary structures for aircrafts. It is also developing new technological applications for composites in automotive. Cytec is the leader in tailored specialty chemical formulations to enhance mining separation processes.

© Worldofchemicals News



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