BASF is to acquire Solvay’s global Polyamides business for € 1.6 billion (approx. £1.4 billion GBP) in a deal expected to close in the third quarter of 2018.
In a statement released today (19 Sep) Solvay said the sale is “a crucial step” in its transformation towards becoming a multi-speciality chemicals company.
"Solvay's planned divestment of Polyamides marks a tipping point in the profound transformation journey we began four years ago. Successful completion of this transaction will further reinforce Solvay as a multi-speciality chemical group, delivering superior growth and sustainable value," said Jean-Pierre Clamadieu, CEO of Solvay.
BASF has acquired the business on “a on a cash and debt-free basis” it said, adding that the Polyamides division would complement its engineering plastics portfolio and expand the company’s position, particularly by enhancing access to key growth markets in Asia and South America.
At the same time, the purchase will strengthen BASF’s polyamide 6.6 value chain through increased polymerisation capacities and the backward integration into the key raw material ADN (adipodinitrile).
For the full year 2016, net sales of the Polyamides business amounted to €1.32 million. It has approximately 2,400 employees globally and, worldwide, it operates 12 production sites, four R&D locations and 10 technical support centres.
The business would be integrated into BASF’s Performance Materials and Monomers divisions.