Solvay has successfully completed the purchase of Cytec, and aims to fully consolidate its US counterpart within the group by January 1, 2016, in order to deliver cost synergies and capture significant business opportunities. The Belgian company has promised to deliver €100 million in annual synergies within three years of the acquisition.
“Cytec represents a decisive milestone in Solvay’s transformation and opens up new horizons for growth and innovation. Solvay is now a leading provider of lightweighting materials for the aerospace industries,” said Jean-Pierre Clamadieu, CEO of Solvay. “Thanks to extensive preparations, we will now embark on a swift and efficient integration of Cytec’s businesses and its talented teams into Solvay and to accelerate value generation for our shareholders.”
A team of personnel from both companies has been working on integration plans since October. Solvay will create two new Global Business Units; one for Cytec’s composite businesses and another combining Cytec’s In Process Separation, Polymer Additives and Formulated Resins activities with Solvay’s phosphorus-based intermediates.
According to Solvay, the financing is nearly complete, with the issuance of €4.7 billion senior and hybrid bonds and the ongoing €1.5 billion right issue.