Solvay has reached an agreement to sell its cellulose acetate tow business, Acetow, to private equity funds managed by Blackstone.
Jean-Pierre Clamadieu, CEO of Solvay, said the divestment of Acetow “is another significant step in Solvay's transformation towards a multi-specialty chemical group with a higher growth profile.”
The transaction is based on an enterprise value of about €1 billion, representing around 7 x EBITDA multiple. The net proceeds will contribute to the continued deleveraging of Solvay. Solvay expects to generate a capital gain of around €150 million after tax.
Completion of the transaction is expected in the first half of 2017 and is subject to the customary social procedures and approval by the relevant antitrust authorities.