2 Jan 2007
Brussels - Solutia Inc. has reached an agreement to buy Akzo Nobel NV's share of Flexsys NV, a 50-50 rubber chemicals joint venture the two firms formed in 1995.
Solutia also will purchase Akzo Nobel's toll manufacturing operation for Flexsys at the Akzo's Kashima site in Japan.
Terms of the agreement were not disclosed. Solutia said the proposed agreement is subject to normal closing conditions.
Brussels, Belgium-based Flexsys posted 2005 sales of about $600 million and employs more than 1000 at 15 factories worldwide: eight in Europe, three in North America, two in South America and two in Asia.
Solutia said it planned to fund the purchase through a combination of sources, including a portion of a new debtor-in-possession financing package that the company announced in conjunction with the Flexsys transaction. Its new financing package, which also requires Bankruptcy Court approval, represents an increase of $250 million and a one-year extension over the firm's current DIP financing.
Akzo said the recent realignment of its chemicals portfolio meant its stake in Flexsys no longer fit its future growth plan.
From Rubber & Plastics News (A Crain publication)
Press release from SOlutia
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