01 April 2009 15:20 [Source: ICIS news]
TORONTO (ICIS news)--Solutia will sell its nylon business to an affiliate of New York-based private equity group SK Capital Partners for $50m (€38m) in cash, the US specialty chemicals producer said on Wednesday.
After closure, which is expected in the second quarter, Solutia would also receive a 2% equity stake in a new company that would hold substantially all of the assets of the nylon business, it said.
“Following this divestiture, Solutia will have completed its transformation into a pure-play performance materials and specialty chemicals company, with a portfolio of high-value products with world-leading positions," CEO Jeffry Quinn said.
"The nylon sale is a positive step toward securing Solutia's future,” he added.
“We recognise that we are operating in an unprecedented economic environment and we remain focused on cost reduction, operational efficiency, cash flow generation, liquidity and covenant compliance."
SK would assume substantially all of the liabilities of the nylon business, including pension liabilities for active employees, as well as environmental liabilities, Solutia said.
Solutia, for its part, would use the nylon sale proceeds to pay down debt under its asset-based revolving credit facility, it said.The nylon business sale includes plants in ?xml:namespace>
SK is described as a private equity firm focused on chemicals, material and healthcare.
($1 = €0.75)
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