Solvay SA has agreed to buy Rhodia SA of France for EUR 3.4 billion (USD 4.8 billion) in cash to add speciality chemicals spanning ingredients for moisturizers and car-part polymers.
Shareholders Rho…
Solvay SA has agreed to buy Rhodia SA of France for EUR 3.4 billion (USD 4.8 billion) in cash to add speciality chemicals spanning ingredients for moisturizers and car-part polymers. Shareholders Rhodia will receive EUR 31.6 a share, 50% more than its closing price on 1 April, according to Solvay. Including debt, the deal has an enterprise value of EUR 6.6 billion. The addition of Rhodia will create a company with EUR 12 billion in revenue, 40% generated in emerging markets. Solvay is paying 7.3 times recurring earnings before interest, taxes, depreciation and amortization, which is in line with the average multiple for speciality chemical acquisitions. The company sees the possibility of doubling its earnings to almost EUR 2 billion. Solvay said it expects to close the Rhodia purchase by late August. BNP Paribas and Credit Suisse advised Rhodia on the deal. Morgan Stanley advised Solvay.