MOSCOW (MRC) -- Solvay has successfully completed the acquisition of Cytec and will immediately begin the integration of Cytec’s businesses to deliver cost synergies and capture significant business opportunities in advanced lightweighting materials for the aerospace and automotive industries and in specialty chemicals for mining, asp er Cytec's press release.
A large team of Solvay and Cytec personnel has been mobilized since early October to prepare detailed integration plans. Solvay will also create two new Global Business Units (GBU):
a GBU will group Cytec’s composite businesses Aerospace Materials and Industrial Materials. Bill Wood is appointed President of this GBU, which will form part of the Advanced Materials segment;
a GBU will combine Cytec’s In Process Separation, Polymer Additives and Formulated Resins activities with Solvay’s phosphorus-based intermediates. Mike Radossich is appointed President of this GBU, which will form part of the Advanced Formulations segment.
Solvay fully expects to generate a minimum of EUR100 million in annual synergies within three years after the acquisition. The acquisition is expected to be accretive to adjusted earnings and free cash flow after the first year of the acquisition and to CFROI in the mid-term.
The financing of the acquisition is nearly completed. It consists of the issuance of around EUR4.7 billion senior and hybrid bonds and the ongoing EUR1.5 billion right issue.
As MRC informed earlier, on July 28, 2015, Solvay entered into a definitive agreement with U.S.-based Cytec to acquire 100% of its share capital for USD75.25 per share in cash. The acquisition has been approved by Cytec’s shareholders, but is still subject to customary closing conditions, including regulatory approvals. Cytec will be fully consolidated within the Solvay Group as from Jan 1st, 2016.
Cytec Industries Incorporated, based in Woodland Park, New Jersey is a speciality chemicals and materials technology company with pro-forma sales in 2004, including the Surface Specialties acquisition, of approximately USD3.0 billion. Cytec is a result of its spin-off from American Cyanamid Company. It makes resins, plastics, and composite materials, especially for the aerospace industry and other users of specialty materials.
Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers - fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
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