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Solvay to begin integration of Cytec & capture synergies

18 Dec '15

2 min read

Solvay which completed the acquisition of Cytec will immediately begin the integration of Cytec's businesses to deliver cost synergies and capture significant business opportunities.

“These opportunities arise in advanced lightweighting materials for the aerospace and automotive industries and in specialty chemicals for mining,” the company informed in a press release.

“Cytec represents a decisive milestone in Solvay's transformation and opens up new horizons for growth and Solvay is now a leading provider of lightweighting materials for the aerospace industry,” Jean-Pierre Clamadieu, CEO of Solvay said.

“Thanks to extensive preparations, we will now embark on a swift and efficient integration of Cytec's businesses and its talented teams into Solvay and to accelerate value generation for our shareholders,” Clamadieu noted.

A large team of Solvay and Cytec personnel has been mobilised since early October to prepare detailed integration plans, while Solvay will also create two new global business units (GBU).

One GBU will group Cytec's composite businesses Aerospace Materials and Industrial Materials, which will be headed by Bill Wood and will form part of the Advanced Materials segment.

The second GBU will combine Cytec's In Process Separation, Polymer Additives and Formulated Resins activities with Solvay's phosphorus-based intermediates, which will be headed by Mike Radossich.

Solvay fully expects to generate a minimum of €100 million in annual synergies within three years after the acquisition and the acquisition is expected to be accretive to adjusted earnings and free cash flow after the first year of the acquisition.

Solvay added that the financing of the acquisition is nearly completed and consists of the issuance of around €4.7 billion senior and hybrid bonds and the ongoing €1.5 billion right issue.

Solvay is headquartered in Brussels with about 30,000 employees spread across 53 countries and generated pro forma net sales of €11.72 billion in 2014. (AR)

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