Solvay agrees to sell its European PVC compound business to OpenGate Capital
April 10, 2014 - London
Brussels, April 10, 2014 --- Solvay has signed an agreement to sell its polyvinyl chloride (PVC) compound business Benvic Europe to U.S. investment company OpenGate Capital, further improving the resilience of the Group's portfolio.
Benvic Europe mixes PVC and additives, pigments and stabilizers to make innovative plastic compounds, which are processed to serve markets ranging from cars and aircrafts to medical applications and construction.
"This divestment is part of Solvay's transformation to achieve higher growth and greater cash returns and helps to reduce its exposure to the economic cycle," said Jacques van Rijckevorsel, member of Solvay's Executive Committee. "OpenGate Capital's long-term investment strategy will allow Benvic to seize growth opportunities in Europe."
Benvic generated revenues of about €160 million in 2013. It has about 220 employees across Europe, with three PVC compounding production sites in France, Italy and Spain. The divestment will not affect Benvic's current headcount.
The closing of this transaction is expected in the first half of 2014 and is subject to the approval of the anti-trust authorities.
| As an international chemical group, SOLVAY assists industries in finding and implementing ever more responsible and value-creating solutions. Solvay generates 90% of its net sales in activities where it is among the world's top three players. It serves many markets, varying from energy and the environment to automotive and aerospace or electricity and electronics, with one goal: to raise the performance of its clients and improve society's quality of life. The group is headquartered in Brussels, employs about 29,400 people in 56 countries and generated 9.9 billion euros in net sales in 2013. Solvay SA (SOLB.BE) is listed on NYSE Euronext in Brussels and Paris (Bloomberg: SOLB:BB - Reuters: SOLB.BR).|
Headquartered in Los Angeles, OpenGate Capital is a global private investment firm specializing in the acquisition and operation of businesses throughout North America, Europe and Latin America. The firm's portfolio includes businesses operating in a variety of industries and generates revenues of nearly $3 billion. Visit the website.
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Source: Solvay S.A. via Globenewswire