NATRIUM advises DOMO Chemicals on acquisition of Solvay’s Performance Polyamides Business in Europe

Natrium Capital Limited is pleased to announce it has advised DOMO Chemicals, who has recently signed an agreement to acquire Solvay’s Performance Polyamides Business in Europe.

  • Deal includes Engineering Plastics operations in France and Poland; High Performance Fibers in France; Polymer and Intermediates operations in France, Spain & Poland.
  • Acquisition will significantly strengthen Domo Chemicals’ downstream nylon-based engineering materials business – and create a European leader with scale.
  • Strong reputation of Technyl® brand will perfectly complement DOMO’s polyamide portfolio.

DOMO Chemicals and Solvay have signed today an agreement for DOMO to acquire Solvay’s Performance Polyamides Business in Europe. This includes Engineering Plastics operations in France and Poland; High Performance Fibers in France; Polymer and Intermediates operations in France, Spain & Poland. The agreement also involves a joint venture between BASF and DOMO in France for the production of Adipic Acid. The Business comprises Production, Sales, Technical Support, R&D and Innovation services which currently have a combined headcount of approximately 1,100 employees. The acquisition, which is subject to approval by the competent competition authorities, is expected to close by the end of Q4 2019. The purchase price to be paid by DOMO on a cash and debt-free basis would amount to EUR 300 million.

The acquisition of this leading PA 6.6 business will significantly strengthen Domo Chemicals’ downstream nylon-based engineering plastics business – and create a European leader with scale, entering the market with a top position in PA6/6.6 in Europe. The result: a backward integrated business with unique technology capabilities and a secured supply of key raw materials. There will be a strong focus on driving combined innovation, whilst accelerating future growth. Through the acquisition Domo Chemicals turnover will grow from EUR 900 million to EUR 1,600 million.

Speaking for DOMO Chemicals, Alex Segers, CEO called the acquisition “a major step forward.” “By integrating the complementary strengths of the diverse teams and talents of both companies, we will enhance our excellence towards our customers by building a unique and competitive integrated Nylon solution provider (6 and 6.6) driven by a strong innovation platform to push future sustainable growth. The strong reputation of the Technyl® brand will perfectly complement DOMO’s wide DOMAMID® range of engineered and virgin polyamide resin grades and ECONAMID® range of recycled polyamides. We are looking forward to offering employees from both companies great opportunities for personal and career development.”

Natrium Capital and ABN AMRO Capital acted as joint financial advisors to DOMO Chemicals in connection with this transaction.

About DOMO Chemicals

DOMO Chemicals is a leading producer of high-quality engineering materials for a diverse range of markets, including the automotive, food, medical, pharmaceutical, chemicals and electronics industries. The company offers a complete portfolio of integrated nylon 6 products, including intermediates, resins, engineering plastics and packaging film and distribution of petrochemical products. Headquartered in Germany, the family-owned company leverages advanced technology and consumer insights to deliver sustainable & innovative solutions. DOMO generated 2018 sales over EUR 900 million and employs approximately 1,100 employees worldwide.

www.domochemicals.com

About Natrium Capital

Natrium Capital is an independent corporate finance boutique specialising in the chemicals, paints and coatings, materials, biotechnology and clean technology industries. Natrium Capital offers high level strategic and specialist M&A (Mergers and Acquisitions) execution advice and has a wealth of experience in investment banking and corporate finance. Natrium Capital advises clients in Europe, North America, Latin America and Asia. Natrium Capital was set up by Alasdair Nisbet in 2012.

Find more information at www.natriumcapital.com.

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