May 12 2005
SOLVAY SA has announced that it has signed a memorandum of understanding with RENOLIT A.G. aiming at the sale of its entire Industrial Foils business, active in the production, marketing and sales of plastic foils and sheets to RENOLIT. Both parties will now enter into exclusive talks and intend to finalize the transaction before year end, pending relevant regulatory approval and social procedures.
The agreed price for the transaction is EUR 330 million. This proposed transaction does not include Solvay’s rigid plastic foils activities, whose sale to Ineos was announced last January.
The Industrial Foils of SOLVAY are mainly present in Europe with 9 plants located in 8 countries, but also in the United States with one plant located in Commerce (California) as well as in China and Brazil through two joint ventures. The products are intended for a variety of applications, including medical supply, swimming pools, furniture, construction, stationary, automotive, as well as different consumer goods niches. Solvay’s Industrial foils generated a total turnover of about EUR 470 million in 2004 with 2 200 employees.
The operation would enable the Industrial Foils to join a Group which considers plastic foils as a core development area, and for which the SOLVAY Industrial Foils activity represents a source for coherent diversification and reinforcement.
http://www.solvay.com/