Belgian chemicals company Solvay S.A. (SVYSY.PK, SVYSF.PK) claimed on Wednesday that the company is planning merger agreement to obtain the formula of U.S.-based specialty materials and chemicals company Cytec Industries Inc.
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Solvay said in a statement on Wednesday it would pay $75.25 per share for Cytec in cash, which closed at $58.39 on Tuesday.
It said the acquisition would allow it to achieve annual synergies of over $110 million.
Cytec manufactures composite and adhesive materials used in airplanes and cars and reagent chemicals which are used in mining for processing minerals and solvent extraction.
Solvay has bridge financing for the transaction, and it plans a 1.5 billion-euro rights issue.
New Jersey-based Cytec, with 4 600 employees worldwide, generated revenue of $2.0 billion last year, half of which in North America, a third in the Europe, Middle East and Africa region, and the remainder in Asia Pacific and Latin America. The panel of Solvac and most prominent shareholder has mutually confirmed their association and support for the deal.
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The Belgian company separately announced second-quarter results showing a strong return to profitability, with net earnings of 143 million euros compared with a loss of 292 million euros a year earlier. The median estimate represents a 5.47% increase from the previous close of €128.00.
