International. BASF and Solvay have signed an agreement regarding the sale of Solvay's integrated polyamide business to BASF. The purchase price in cash and without debt would be 1,600 million euros.
In accordance with applicable laws, the intended transaction is subject to consultation with Solvay's relevant corporate bodies, after which both companies will enter into a binding purchase contract. Solvay and BASF aim to close the transaction in the third quarter of 2018, once the usual regulatory approvals have been obtained and the formal consent of a partner of the joint venture has been received. The partner has already undertaken to give his consent subject to the delivery of final documents to BASF.
The acquisition would complement BASF's engineering plastics portfolio and expand the company's position as a solution provider for transportation, construction, industrial applications and consumer industries. At the regional level, the transaction would improve 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 polymerization capabilities and backward integration into the key raw material DNA (adipodinitrile).
For 2016, net sales of the business to be acquired from Solvay amounted to €1,315 million and EBITDA to approximately €200 million. It has approximately 2,400 employees worldwide, of which approximately 1,300 are in France. Worldwide, it operates 12 production centers, 4 R&D centers and 10 technical support centers. The business would be integrated into BASF's Performance Materials and Monomers divisions.
