Belgium's Solvay sells pharmaceutical business for €5.2bn

28 September 2009 09:26  [Source: ICIS news]

LONDON (ICIS news)--Solvay has sold its pharmaceutical business to US company Abbott Laboratories for an enterprise value of €5.2bn ($7.6bn), the Belgian plastics and chemicals producer said on Monday.

The enterprise value includes €4.5bn in cash, additional potential payments of up to €300m if certain milestones are reached and liabilities of €400m, the company added in a statement.

“This transaction is expected to be closed in the first quarter of 2010, pending the approval by relevant competition authorities,” the company added.

Solvay said that once the deal is closed the company planned to reinvest in “value-added activities and strategic projects in chemicals and plastics”.

Solvay’s CEO, Christian Jourquin, said: “We are building a new refocused group with the financial means to further accelerate sustainable growth on today’s strong foundations.”

The planned Solvay Investor Day, which was scheduled for 29 September, had been cancelled.

At 10:10 hours local time on the Euronext exchange in Brussels, Solvay’s shares were trading at €71.71, down about 4% on the last close.

($1 = €0.68)

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By: Lucy Craymer
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