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 adds U.K. plant to DelStar

November 25, 2014 12:47 pm ET

Schweitzer-Mauduit International Inc. (SWM) is acquiring certain assets from the advanced wound management division of London-based Smith & Nephew...    More

Image

Onex buying packaging group SIG Combibloc

November 24, 2014 9:05 am ET

ex Corp. will buy SIG Combibloc Group, the Switzerland-based manufacturer of aseptic carton packaging and plastics closures from New Zealand's Rank...    More

Image

3D Systems buying Cimatron

November 24, 2014 1:46 pm ET

3D Systems Corp. is buying Cimatron Ltd., an Israel-based company that makes integrated computer-assisted design and manufacturing software, for $97...    More

Image

Compounding products and services

November 24, 2014 9:47 am ET

   More

Image

Dow reaches agreement with Third Point

November 21, 2014 9:11 am ET

Dow Chemical Co. has reached an agreement with the investment firm that has been trying to force the company to sell off some assets.
More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events