The Belgian chemicals group Solvay is to take over Cytec, located in New Jersey (Northeastern US) for 5.5 billion USD, announced the group in a statement on Wednesday. Cytec specialises in composite materials for the aircraft and automotive sectors and in solutions to improve ore separation. “This acquisition project marks a milestone in the transformation of our business portfolio,” commented the head of Solvay, Jean-Pierre Clamadieu. Cytec achieved a turnover of 2 billion USD last year, nearly half of which in North America, and we believe we will increase that by 100 million euros a year (pre- tax). Cytec employs some 4,600 people worldwide.
To complete the transaction, Solvay plans to increase its capital by 1.5 billion euros. An extraordinary general meeting is to be convened in the near future. The board of directors at SOLVAC, principal shareholder of Solvay (30%), unanimously supports the operation intends to vote in favour of the capital increase. Solvay expects to close the transaction in the fourth quarter.