Solvay has entered into a definitive merger agreement with U.S.-based Cytec to acquire 100% of its share capital forUS$75.25per share in cash. The total cash consideration will amount toUS$5.5billion, corresponding to an enterprise value of US$6.4 billion and representing a 2015estimated EBITDA multiple of14.7xand of11.7x when considering synergies potential linked to the transaction. The transaction price per share represents a premium of28.9% compared to the closing price of Cytec on 28th July 2015and a premium of26.9% 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 light weighting with advanced materials in aerospaceandau to motive, as well as to strength enits know-how with activities in mining chemicals,” said Jean-Pierre Clamadieu, CEO of Solvay. “Cytec is a high-growth, high-quality group with leading market positions.
We are looking forward to working wit hits excellent teams. This acquisition will create value for our stakeholder sand will support our ambition to become a leader in sustainable chemistry. This transaction will lead us to further accelerate our transformation.”
“We are excited to be joining with Solvay, a leading player in the chemical industry with over 150 years of success. Their strategic focus is perfectly aligned with our businesses, while the technology synergies with their specialty polymers and formulations expertise should accelerate our growth. Our customers and our employees should expect to see continuity and strong support of our current strategy,” said Shane Fleming, CEO of Cytec.