ST. LOUIS, Dec. 3 -- Solutia Inc. has agreed to sell several non-plastics assets involving resins, additives, and adhesives, to Brussels-based UCB S.A. for $500 million. The deal will not affect Solutia's performance film and intergrated nylon businesses, a Solutia spokeswoman said.
UCB has made an upfront payment of $10 million for a short period of exclusivity. The transaction, which is expected to close in early 2003, requires regulatory approval. UCB is a pharmaceutical and specialty chemical company which employs 10,000.
The deal strengthens Solutia's balance sheet and allows it to pay down a substantial amount of debt, according to John Hunter, chairman, president, and chief executive officer of Solutia. The divestiture is also part of Solutia's strategy to focus
on performance films, specialty products, and nylon.
The agreement includes 10 production sites that make liquid and powder coatings, technical resins, additive products, and pressure-sensitive adhesives. The resins, additives, and adhesives businesses employ approximately 1700 in 22 countries and have sales of over $400 million for the nine months ended Sept. 30.
Solutia will sell manufacturing facilities in Wiesbaden, Frankfurt-Fechenheim, and Hamburg, Germany; Werndorf, Austria; Romano d'Ezzelino, Italy; Dijon, France; Soborg, Denmark; La Llagosta, Spain; Rayong, Thailand; and Suzano, Brazil, as well as research and development facilities in Graz, Austria, and Springfield, MA.