Solvay sells polyamide business to BASF

SOLVAY is selling its integrated polyamides business to BASF for €1.6bn (US$1.92bn) as it continues its transformation into a specialty chemicals company.

The sale includes Solvay’s upstream and downstream polyamides business in Europe, North America and Asia as well as a downstream engineering plastics business in Latin America. Taken together, the business employs 2,400 staff and operates 12 production sites, four R&D facilities and ten technical support centres around the world.

The sale continues Solvay’s focus on specialty chemicals, which it kickstarted with the purchase of aerospace composite materials firm Cytec for US$6.4bn in 2015.

BASF says the polyamides business will complement its existing engineering plastics portfolio and expand its position as a supplier to the transportation, construction 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),” BASF said in a statement.

The €1.6bn price tag represents eight times the business’ earnings before tax in 2016.

The deal is expected to close in Q3 2018.