Domo Chemicals (Ghent, Belgium), a family-owned producer of nylon-6, and Solvay have today signed an agreement for Domo to acquire Solvay’s performance nylon-6,6 business in Europe for €300 million ($334.7 million) on a cash and debt-free basis. It followed a deal signed between Solvay and BASF under which BASF is acquiring the global, non-European nylon-6,6 business from Solvay, including its 50% share in Butachimie’s adiponitrile (ADN) production facility in France.
Earlier this year, the European Commission mandated Solvay and BASF to divest Solvay’s production facilities at Belle-Etoile and Valence, France; Gorzow, Poland; and Blanes, Spain, to a single suitable buyer. These facilities produce hexamethylenediamine (HMDA) and HMDA adipate salt, as well as nylon-6,6 base polymer, nylon-6,6 engineering plastics, and nylon-6 3D printing powder.
BASF and Solvay have also agreed to create a production joint venture at Chalampé, France, between the merged entity and Domo, for the production of adipic acid and to conclude long-term supply agreements for ADN to meet the divested business’s requirements.
Domo confirms the acquisition includes engineering plastics operations in France and Poland; high-performance fibers in France; and polymer and intermediates operations in France, Spain, and Poland. The business comprises production, sales, technical support, R&D, and innovation services and employs approximately 1,100 people. The deal is expected to close by the end of the fourth quarter of 2019.
Domo says that through the deal it will significantly strengthen its downstream nylon-based engineering plastics business and create a leader with scale, entering the market with a top position in nylon-6 and nylon-6,6 in Europe. It back-integrates Domo’s operations and provides it with a secured supply of key raw materials. Following the acquisition, Domo Chemicals’ revenue will nearly double from €900 million/year to €1.6 billion/year.
Alex Segers, CEO of 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—both 6 and 6,6—driven by a strong innovation platform to push future sustainable growth.”
The strong reputation of the Technyl brand will complement Domo’s wide Domamid range of engineered and virgin nylon resin grades and Econamid range of recycled nylons, the company says. Domo is a producer of engineering materials for the automotive, food, medical, pharmaceutical, chemicals, and electronics industries. It has a complete portfolio of integrated nylon-6 products, including intermediates, resins, engineering plastics, and packaging films.
By Natasha Alperowicz
Source: Chemical Week
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