Domo Chemicals signs deal with Solvay
Pic: Domo Chemical
Domo Chemicals has signed a deal with Solvay to take over its Performance Polyamides Business in Europe. The business to be taken over includes engineering plastics operations in France and Poland; high performance fibres in France; and polymer and intermediates operations in France, Spain and Poland. The acquisition is likely to close by the end of Q4 2019.
The agreement also involves a joint venture between BASF and Domo in France for the production of Adipic Acid. The business comprises production, sales, technical support, R and D and innovation services which currently have a combined headcount of approximately 1100 employees.
The acquisition, which is subject to approval by the competent competition authorities, is expected to close by the end of Q4 2019. The purchase price to be paid by Domo on a cash and debt-free basis would amount to €300 million.
The acquisition of this leading PA 6.6 business will significantly strengthen Domo Chemicals’ downstream nylon based engineering plastics business - and create a European leader with scale, entering the market with a top position in PA6/6.6 in Europe. The result: a backward integrated business with unique technology capabilities and a secured supply of key raw materials. There will be a strong focus on driving combined innovation, whilst accelerating future growth.
Alex Segers, CEO, Domo Chemicals, called the acquisition “a major step forward.” “By integrating the complementary strengths of the diverse teams and talents of both companies, we will enhance our excellence towards our customers by building a unique and competitive integrated nylon solution provider (6 and 6.6) driven by a strong innovation platform to push future sustainable growth.”
“The strong reputation of the Technyl brand will perfectly complement Domo’s wide Domamid range of engineered and virgin polyamide resin grades and Econamid range of recycled polyamides. We are looking forward to offering employees from both companies great opportunities for personal and career development,” Segers said. (SV)
Fibre2Fashion News Desk – India