BASF to acquire Solvay’s global polyamide business for EUR1.6 bn

Germany-based chemical company BASF and Belgium-headquartered Solvay have signed an agreement related to the sale of Solvay’s integrated polyamide business to BASF. The purchase price on a cash and debt-free basis would be EUR1.6 billion. According to applicable laws, the intended transaction is subject to consultations with the relevant social bodies of Solvay, following which both companies will enter a binding purchase agreement. Solvay and BASF aim to close the transaction in the third quarter of 2018, 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.

BASF says the acquisition will complement its engineering plastics portfolio and expand the company’s 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.

At the same time, the purchase would strengthen BASF’s polyamide 6.6 value chain through increased polymerisation capacities and the backward integration into the key raw material ADN (adipodinitrile).

For the full year 2016, net sales of the business to be purchased from Solvay amounted to EUR1.3 billion and EBITDA to around EUR200 million.

It has approximately 2,400 employees globally, thereof approximately 1,300 in France. Worldwide, it operates 12 production sites, 4 R&D locations and 10 technical support centres. The business would be integrated into BASF’s Performance Materials and Monomers divisions.