(updates with Solvay’s statement, adds details throughout)
SINGAPORE (ICIS)--BASF will acquire the global integrated polyamide business of Belgian producer Solvay for €1.6bn “on a cash and debt-free basis”, the German chemical maker said on Tuesday.
“Solvay and BASF aim to close the transaction in the third quarter of 2018,” it said in a statement.
The deal will be concluded after “customary regulatory approvals have been obtained and the formal consent of a joint venture partner has been received. The partner has already committed to grant its consent subject to the delivery of definitive documents with BASF,” the German producer said.
Solvay’s polyamide business posted a net sales of €1.32bn and earnings before interest, tax and amortisation (EBITDA) of around €200m in 2016.
The business has 12 production sites globally, four research and development (R&D) locations and 10 technical support centers, BASF said.
The business would be integrated into BASF’s Performance Materials and Monomers divisions.
“The transaction covers Solvay's upstream and downstream polyamides business in Europe, North America and Asia, as well as the downstream engineering plastics business in Latin America and involves around 2,400 Solvay employees,” Solvay said in a separate statement.
The Belgian company said it will retain its upstream intermediates and downstream textile polyamide business in Latin America.
BASF said that the acquisition would complement its engineering plastics portfolio and expand its position as a solution provider for the transportation, construction, industrial applications and consumer industries.
“Regionally, the transaction would enhance access to key growth markets in Asia and South America,” BASF said.
“At the same time, the purchase would strengthen BASF’s polyamide 6.6 value chain through increased polymerization capacities and the backward integration into the key raw material ADN (adipodinitrile),” it added.
Solvay, on the other hand, said the sale of its polyamide business represents a “crucial step” in its transformation into a multi-specialty chemicals company.
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