15 December 2015
15 December 2015
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.
“Cytec represents a decisive milestone in Solvay’s transformation and opens up new horizons for growth and innovation. Solvay is now a leading provider of lightweighting materials for the aerospace industry,” said Jean-Pierre Clamadieu, CEO of Solvay. “Thanks to extensive preparations, we will now embark on a swift and efficient integration of Cytec’s businesses and its talented teams into Solvay and to accelerate value generation for our shareholders.”
A large team of Solvay and Cytec personnel have been mobilised since early October to prepare detailed integration plans. Solvay says it 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 says that it fully expects to generate a minimum of 100 million euros 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 €4.7 billion senior and hybrid bonds and the ongoing € 1.5 billion right issue.
Cytec will be fully consolidated within the Solvay Group as from 1 January 2016.
Hexcel reports that it will be launching a new UK government-backed £7.4 million research and development project Multi Axial Infused Materials (MAXIM).
Altair has acquired Componeering of Helsinki, Finland, developer of the ESAComp composites simulation software.
ELG Carbon Fibre has extended the certification of its quality management system, transitioning to the latest BS:EN 9100 2016 (AS 9100 Revision D) standard.