Solutia Inc. has agreed to buy German specialty polymer materials company Etimex Solar GmbH, which is controlled by private equity group Alpha Gruppe.
Etimex Solar supplies ethylene vinyl acetate encapsulants to the solar photovoltaics market. Its VistaSolar products, which are manufactured in Dietenheim, Germany, include ultrafast-curing EVA films and a newer range of thermoplastic polyurethane films.
Solutia is paying 240 million euros ($325.1 million) for the business, which reported 2009 profit of $31 million and earnings before interest, tax, depreciation and amortization of about $34 million.
St. Louis-based Solutia said combining Etimex's EVA capabilities with its existing Saflex polyvinyl butyral encapsulants will position it as a one-stop source for solar encapsulants.
“This acquisition is a solid step forward that strengthens our core competencies, expands our end markets and supports Solutia's growth strategy,” Jeffry Quinn, chairman, president and CEO of Solutia, said in a news release.
“Renewable energy is an acknowledged source of long-term growth that fits well with Solutia's businesses, and the combination of EVA and PVB encapsulant manufacturing capabilities will result in access to additional opportunities,” he said.
The deal is scheduled to close during the second quarter of 2010.
Solutia reported 2009 sales of $1.67 billion, down 21 percent from 2008. EBITDA was down by 2 percent to $386 million.
The company's business includes the Saflex PVB glazing interlayer and CP Films automotive and architectural window films product lines, as well as the Flexsys rubber chemicals and Therminol and Skydrol specialty fluids units.
Etimex also has a sales office in Sacramento, Calif.: Etimex Solar USA Inc.
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