DOMO Chemicals plans to acquire the Europe-based Performance Polyamides Business of Solvay
Ghent (Belgium), Aug 20 (IBNS): DOMO Chemicals (Ghent) recently signed an agreement to acquire the Europe-based Performance Polyamides Business of Solvay (Brussels).
DOMO Chemicals is a producer of engineering materials for a diverse range of markets, including the automotive, food, medical, pharmaceutical, chemicals and electronics industries.
The company offers a complete portfolio of integrated nylon 6 products, including intermediates, resins, engineering plastics and packaging film and distribution of petrochemical products.
The agreement includes Solvay's Engineering Plastics operations in France and Poland, High Performance Fibers in France, and Polymer and Intermediates operations in France, Spain and Poland.
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&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 fourth quarter of 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 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.
Through the acquisition Domo Chemicals' turn over will grow from 900 million € to 1,600 million €.
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," he said.
Said Segers, "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.”