Composites One LLC has entered an exclusive negotiation period with Solvay for the acquisition of Solvay’s Process Materials (PM) business. The PM business provides an array of vacuum bagging materials including bagging films, breather fabrics, release films and fabrics, peel plies, sealant tapes, and valves and hoses. Additionally, the business is a leader in the manufacture of tailored consumable kits and hard and soft tooling.
Composites One, based in Arlington Heights, IL, is a distributor of composite materials serving customers from more than 44 locations in North America. It offers fabricators and molders thousands of products from more than 600 suppliers. The company’s value-added services include closed mold technologies, process applications reviews, regulatory compliance assistance, and technical support.
“Solvay has significantly strengthened the Process Materials business over the last several years,” said Carmelo Lo Faro, President of Solvay Composite Materials Global Business Unit. “The proposed transaction will deliver value for our shareholders and enable Solvay to continue focusing on our core composites technology portfolio. The Process Materials employees and customers will greatly benefit from this business being part of Composites One’s established and recognized distribution infrastructure. Composites One’s intent is to grow and invest in the business, fostering innovation, reliability, and customer service, and building on the excellent work our teammates have done so far,” said Lo Faro.
Steve Dehmlow, CEO of Composites One, commented, “As their distributor for over two years, we have worked closely with Solvay’s knowledgeable leadership and team members and have seen their focus on serving customers. We know this business is an excellent addition to Composites One. Through their outstanding team, the Process Materials business provides us with a global connection to wind and aerospace customers.”
The completion of the transaction, expected in early Q1 2021, is subject to approval by the relevant regulatory authorities.
Solvay improves profits in Q3
Solvay also released its third quarter and nine-month results, noting that although “headwinds continued in some key end markets,” the company achieved a higher Q3 EBITDA and net profit relative to the second quarter. It reported record free cash flow of €801 million year to date, more than double the prior year period and the sixth consecutive quarter of positive free cash flow.
Underlying net profit was €522 million for the nine months in 2020, with €176 million in the third quarter.
Since beginning the process of exploring options to sell certain business lines, Solvay has reached agreements to sell some interests and will continue to explore other opportunities to further simplify its portfolio, the company said.