Domo Chemicals (Ghent, Belgium) announced today that it has signed an agreement to acquire the Performance Polyamides Business of Solvay (Brussels) in Europe. The deal includes engineering plastics operations in France and Poland; high-performance fibers in France; and polymer and intermediates operations in France, Spain and Poland. The agreement also involves a joint venture between BASF and DOMO in France for the production of adipic acid. Domo reportedly will pay €300 million on a cash and debt free basis to acquire the business, which currently employs approximately 1,100 people.
The acquisition is expected to close by the end of Q4 2019, pending approval by the relevant authorities.
Domo said that the acquisition of the PA 6.6 business will significantly strengthen its 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 “backward-integrated business” has unique technological capabilities and a secured supply of key raw materials, the company added. The acquisition is expected to grow turnover from €900 million to 1.6 billion.
“By integrating the complementary strengths of the diverse teams and talents of both companies, we will enhance our excellence toward our customers by building a unique and competitive integrated nylon solution provider driven by a strong innovation platform to push future sustainable growth,” said Domo CEO Alex Segers in a prepared statement. “The strong reputation of the Technyl brand will perfectly complement the Domamid range of engineered and virgin polyamide resin grades and Econamid range of recycled polyamides,” he added.