United States. Solvay has signed a definitive merger agreement with U.S.-based Cytec to acquire 100% of its share capital of US$75.25 per share in cash. The total sum will be US$5.5 billion, which corresponds to an enterprise value of US$6.4 billion.
Headquartered in New Jersey and with 4,600 employees worldwide, Cytec generated sales of $2 billion in 2014. The sources of almost half of its sales come from North America, almost a third from the Emea region and the rest from Asia Pacific and Latin America.
Cytec specializes in composite materials and mining chemicals. In the rapid growth of the composite materials sector, which accounts for two-thirds of its sales, its main market is primary and secondary structures for aircraft. It is also developing new technological applications for composites in the automotive industry.
Through the acquisition of Cytec, Solvay estimates that it will gain critical scale and immediate customer intimacy in the aerospace industry. In the automotive market, Solvay's positions with OEMs and Tier One suppliers will help drive Cytec's growth.
