St. Louis, United States [RenewableEnergyWorld.com] Solutia Inc. has reached a definitive agreement to purchase Etimex Solar GmbH, a wholly owned subsidiary of Etimex Holding GmbH. The purchase price of €240 million in cash is expected to be financed from existing cash on the balance sheet and additional debt.
Etimex Solar is a supplier of ethylene vinyl acetate (EVA) encapsulants to the photovoltaic market. The acquisition is a significant step in Solutia’s plan to strategically grow its specialty chemicals and performance materials portfolio by enhancing its current businesses. Combining EVA with its existing polyvinyl butyral (PVB) encapsulant capabilities positions Solutia as the world’s only one-stop source for solar encapsulant solutions, the company said.
Etimex’s VistaSolar products, manufactured in Dietenheim, Germany, offer ultra fast curing EVA films as well as new thermoplastic polyurethane (TPU) films which do not require the necessity of curing. The company reported 2009 net income of US $31 million and 2009 EBITDA of approximately $34 million. This transaction is expected to close during the second quarter of 2010, contingent upon customary closing conditions, including receipt of governmental approvals.
“This acquisition is a solid step forward that strengthens our core competencies, expands our end markets and supports Solutia’s growth strategy,” said Jeffry Quinn, chairman, president and chief executive officer of Solutia Inc. “Renewable energy is an acknowledged source of long-term growth that fits well with Solutia’s businesses, and the combination of EVA and PVB encapsulant manufacturing capabilities will result in access to additional opportunities. I am extremely excited about Etimex Solar and the role it will play in Solutia’s future success.”