Rhodia to acquire China’s Feixiang Chemicals

16 June 2010 23:00  [Source: ICIS news]

HOUSTON (ICIS news)--Rhodia plans to acquire China fatty amines and specialty amines producer Feixiang Chemicals, the Paris-based chemical major said on Wednesday.

Rhodia said the acquisition price was based on an enterprise value of $489m (€396m) for 100% of the company. Feixiang’s current majority owner would retain 12.5% of the capital over the next two years, Rhodia said.

Rhodia chairman and chief executive Jean-Pierre Clamadieu said the acquisition of Zhangjiagang city-based Feixiang in Jiangsu province would strengthen the company’s position in the surfactant business for home and personal care, agrochemicals, oilfield and industrial markets.

“We aim to double the size of the acquired business within the next five years,” he said. “Following the completion of this acquisition, Rhodia will generate around one-third of its net sales in Asia.”

Feixiang Chemicals employed about 650 people, with top line growth averaging 20%/year, Rhodia said.

Rhodia said it expected to finalise the acquisition in the second half of this year.

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By: Brian Ford
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