Solvay to buy Cytec

Solvay has entered into a definitive merger agreement with U.S.-based Cytec to acquire 100 % of its share capital for USD 75.25 per share in cash. The total cash consideration will amount to USD 5.5 billion, corresponding to an enterprise value of USD 6.4 billion and representing a 2015 estimated EBITDA multiple of 14.7x and of 11.7x when considering synergies potential linked to the transaction. The transaction price per share represents a premium of 28.9 % compared to the closing price of Cytec on 28th July 2015 and a premium of 26.9 % compared to the volume weighted average closing share price over the last three months. Cytec’s and Solvay’s boards of directors have unanimously recommended the transaction.

“The proposed acquisition of Cytec marks a major step change in Solvay’s portfolio upgrade. It is a unique opportunity for Solvay to boost its customer offerings in lightweighting with advanced materials in aerospace and automotive, as well as to strengthen its know-how with activities in mining chemicals,” said Jean-Pierre Clamadieu, CEO of Solvay. “This transaction will lead us to further accelerate our transformation.”

Headquartered in New Jersey with 4,600 employees across the globe, Cytec generated sales of USD 2.0 billion and a 20 % REBITDA margin in 2014. It sources almost half of its sales from North America, nearly a third from EMEA and the remainder from Asia Pacific and Latin America.