Solvay divests PVC and compounding businesses

EUROPEAN PLASTICS NEWS

Published: December 18, 2013 2:19 pm ET
Updated: December 18, 2013 2:21 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations Solvay SA

Belgian materials group Solvay SA has announced the sale of its 70.59 percent stake in Brazil-based Solvay Indupa S.A.I.C., the second largest producer of PVC in South America, to Braskem. In a separate announcement, U.S. private finance firm OpenGate Capital LLC said it has signed an exclusivity agreement with Solvay to acquire its Benvic PVC compounding business, which has three manufacturing plants in Europe.

Solvay Indupa has 936 employees and two production sites in Argentina and Brazil. Its net sales were 542 million euros in 2012.

Solvay said that transaction is based on a total enterprise value of $290 million, which includes Solvay Indupa’s net financial debt, accounted at year-end 2012 as 178 million euros. The cash proceeds for Solvay’s equity stake are $25 million. Brussels-based Solvay said the divestment is expected to result in a non-cash net loss of about 120 million euros.

“This divestment is part of Solvay’s strategic portfolio management. It will reduce the Group’s exposure to the economic cycle and to energy-intensive businesses, allowing Solvay to achieve higher growth, higher returns and lower capital intensity,” said Jacques Van Rijckevorsel, member of Solvay’s executive committee, in a statement.

Braskem is based in São Paulo, Brazil.

Solvay Indupa has two PVC plants producing resin for the production of pipes and fittings, based in Santo André, Brazil, and Bahia Blanca, Argentina, with combined production capacity of more than 1 billion pounds per year.

Braskem and Mexico’s Mexichem had previously confirmed interest in purchasing the Indupa assets

Meanwhile, Los Angeles-based OpenGate Capital said its acquisition of Benvic, which is expected to be completed in the first half of 2014, would complement its growing position in the European PVC market. In January 2013, the group acquired PVC profile extruder Profialis from Tessenderlo Group.

Andrew Nikou, OpenGate Capital’s founder, managing partner and CEO, said in a statement: “Profialis and Benvic would have a total annual production capacity of more than 200,000 tonnes and close to $330 million in consolidated annual revenues.”

Benvic’s manufacturing facilities are in France, Italy and Spain. The business employs around 200 people and has annual revenues of $220 million.


Comments

Solvay divests PVC and compounding businesses

EUROPEAN PLASTICS NEWS

Published: December 18, 2013 2:19 pm ET
Updated: December 18, 2013 2:21 pm ET

Post Your Comments


Back to story


More stories

Image

Deal puts Convergence Packaging under Comar's umbrella

October 24, 2014 2:00 pm ET

Convergence Packaging Holdings LLC, itself a product of mergers, now is joining together with Comar LLC.    More

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Image

Sabic, Shell cancel expansion for SADAF joint venture in Saudi Arabia

October 24, 2014 9:19 am ET

Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following...    More

Image

Sadara CEO says Middle East now has 20 percent of global ethylene capacity

October 24, 2014 9:33 am ET

Sadara CEO Ziad Al-Labban claims that the Middle East's ethylene capacity is now 20 percent of global production.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events