UpdateUS Solutia completes sale of nylon business to SK Capital
02 June 2009 03:58 [Source: ICIS news]
(Updates with new name of business unit and comments from SK Capital)
SINGAPORE (ICIS news)--US-based specialty chemicals and materials firm Solutia completed the sale of its nylon business to an affiliate of private equity firm SK Capital Partners II for $50m (€36m), Solutia said on Monday.
"This sale completes Solutia’s transformation into a pure-play performance materials and specialty chemicals company, with a portfolio of high-value products that hold world-leading positions," said chairman, president and CEO Jeffry Quinn in a statement.
Solutia retains a 2% stake in the business.
In addition, it will receive $4m in deferred cash payments to be paid in annual $1m installments beginning in 2011, the company said.
SK Capital has also secured the replacement of $25m in credit letters associated with the nylon business. As a result, Solutia has increased availability under its credit agreements.
The affiliates of SK Capital will assume substantially all of the liabilities of the nylon business, including employee and pension liabilities, as well as environmental liabilities, said Solutia which announced the sale on 1 April.
In a separate statement, SK Capital said its newly-acquired nylon business unit has been renamed Ascend Performance Materials, which will be led by industry veteran Frederic Poses.
“Ascend is an excellent fit with our strategy to invest in businesses where we have expertise in order to capitalize on significant upside potential and generate superior returns for our investors,” said Barry Siadat, managing director of SK Capital.
The equity firm said Wells Fargo Foothill provided the financing to complete the transaction.
($1 = €0.71)
To discuss issues facing the chemical industry go to ICIS connect
By: Pearl Bantillo
+65 6780 4359
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Links posted in this story:
|
|
| White Paper - Budgeting for the New Normal - mid year Update |
|
Free updated report (June 2010) on the state of the global economy and the outlook for the chemical industry Download it here >> |
Related Articles
- 06 Nov 09 15:32 Crisis-hit global chemicals industry cuts over 77,000 jobs
- 14 Oct 09 16:06 Solutia to restart insoluble sulphur plant in Pennsylvania
- 28 Jul 09 18:00 Solutia may grow due to low exposure to bankrupt US automakers
- 18 Jun 09 22:36 US Solutia re-affirms 2009 earnings guidance
- 18 Jun 09 18:11 US Solutia sells new stock, share prices dive
- 04 Jun 09 17:24 INSIGHT: Looking beyond the GM bankruptcy
- 02 Jun 09 00:16 Solutia automotive business unfazed by GM bankruptcy
- 01 Jun 09 23:35 US Solutia completes sale of nylon business to SK Capital
- 07 May 09 00:06 US Solutia posts $159m Q1 loss on lower sales
- 06 May 09 22:37 US Solutia fined $117,048 for Texas environmental violations
Latest News
- 09 Sep 10 07:35 India’s Nakoda begins commercial ops at S Korean polyester unit
- 09 Sep 10 06:25 Cristal Global hikes Asia-Pacific TiO2 prices for October
- 09 Sep 10 06:02 Tight supply to push up Asia MMA, more cargoes may head west
- 09 Sep 10 05:52 Taiwan’s Formosa to shut Mailiao caustic soda unit for turnaround
- 09 Sep 10 05:47 VIDEO - ICIS news Asia Lunchtime Bulletin 09 September 2010
John Richardson explores how Asian Chemical Connections hit the wider world
ICIS Asian Chemical Connections