ENP Newswire - 01 August 2014
Release date- 31072014 - Brussels --Solvay has signed a binding agreement to sell its sulfuric acid virgin production and regeneration business Eco Services to affiliates of CCMP Capital Advisors, LLC.
'The divestment of Eco Services is another step in Solvay's transformation aimed at achieving higher growth and greater returns. Eco Services has a market leading position and generates stable cash flows, but its business profile differs from Solvay's strategic ambitions,' said Jean-Pierre Clamadieu, CEO of Solvay. 'CCMP Capital is committed to working with the management team to make the investments necessary to support the long term growth of the business'.
The transaction terms correspond to an enterprise value of US$ 890 million (EUR 660 million), which represents just over 8,0x adjusted EBITDA for the last twelve months ending June 30th, 2014.
CCMP specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. CCMP's core strategy is to enhance the value of its portfolio companies through an active approach to operational transformation. With offices in New York, Houston and London, CCMP invests in four primary industries: Consumer/Retail, Industrial, Energy and Healthcare.
Solvay announced in February that it was exploring strategic options for Eco Services. Completion of the transaction, expected in the fourth quarter, is subject to customary closing conditions.
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 aeronautics 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 is listed as SOLB.BE on NYSE Euronext in Brussels and Paris (Bloomberg: SOLB:BB - Reuters: SOLB.BR).
Solvay Eco Services is the U.S. leader in technologies that sustainably regenerate sulfuric acid for oil refineries. It also produces virgin sulfuric acid that is used in a range of applications, including mining, water treatment and other industrial chemical processes. Thanks to its network of six large-scale manufacturing plants, Eco Services supplies most of the largest refineries in the U.S. West Coast, Midwest, the Gulf of Mexico and Canada. Headquartered in Cranbury, New Jersey, Eco Services sales reached EUR 288 million in 2013 with more than 500 employees.