Belgium's Solvay is acquiring composites and plastic additives manufacturer Cytec Industries for $5.5 billion through a cash merger with one of its subsidiaries. The transaction is expected to close in the fourth quarter of 2015.

"The proposed acquisition of Cytec marks a major step change in Solvay's portfolio upgrade. It is a unique opportunity for Solvay to boost its customer offerings in lightweighting with advanced materials in aerospace and automotive, as well as to strengthen its know-how with activities in mining chemicals," said Jean-Pierre Clamadieu, CEO of Solvay. Cytec also sells light stabilizers, antioxidants and antistatic agents for polymers.

Headquartered in New Jersey with 4,600 employees across the globe, Cytec generated sales of $2 billion in 2014. It sources almost half of its sales from North America, nearly a third from EMEA, and the remainder from Asia Pacific and Latin America. 

Cytec is among the world leaders in composite materials. In this fast-growing sector, which represents two thirds of its sales, its principal market is primary and secondary structures for aircrafts. The company is also developing new technological applications for composites in automotive.

Through the acquisition of Cytec, Solvay will gain critical scale and immediate customer access in aerospace. Further, in the automotive market, Solvay's strong positions with OEMs and tier-one suppliers will help bolster Cytec's growth.

 Cytec's composites businesses will be integrated into Solvay's Advanced Materials operating segment. Significant cross-selling opportunities have been identified with Specialty Polymers, which includes together Solvay's advanced engineering plastics, both in aerospace and automotive.