Solutia Announces Agreement To Acquire Etimex Solar

Date: 2 March 2010
Source: Solutia
Uniquely positions Solutia as a global provider of both major encapsulants to the fast-growing photovoltaics industry ST.

LOUIS, March 1, 2010 /PRNewswire via COMTEX/ -- Solutia Inc. (NYSE: SOA) today announced that it has reached a definitive agreement to purchase Etimex Solar GmbH, a wholly owned subsidiary of Etimex Holding GmbH, which is controlled by funds affiliated with Alpha Gruppe. The purchase price of euro 240 million in cash is expected to be financed from existing cash on the balance sheet and additional debt. Etimex Solar is a leading supplier of ethylene vinyl acetate (EVA) encapsulants to the photovoltaic market. The acquisition is a significant step in Solutia's plan to strategically grow its specialty chemicals and performance materials portfolio by enhancing its current businesses.
Combining EVA with its existing polyvinyl butyral (PVB) encapsulant capabilities positions Solutia as the world's only one-stop source for solar encapsulant solutions. This will enable Solutia to better meet customer needs by providing the broadest product offering in the industry. In addition, Saflex's processing expertise, global commercial capabilities, and technology resources will enable rapid expansion in the photovoltaic market. Additional immediate benefits include:
Diversification and expansion of end markets
Enhancement of Solutia's already strong EBITDA margins
Enhancement of Solutia's position as a leading components supplier to the high-growth renewable energy sector
Product development and commercial synergies
"This acquisition is a solid step forward that strengthens our core competencies, expands our end markets and supports Solutia's growth strategy," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "Renewable energy is an acknowledged source of long-term growth that fits well with Solutia's businesses, and the combination of EVA and PVB encapsulant manufacturing capabilities will result in access to additional opportunities. I am extremely excited about Etimex Solar and the role it will play in Solutia's future success."
Etimex's VistaSolar(R) products, manufactured in Dietenheim, Germany, offer ultra fast curing EVA films as well as new thermoplastic polyurethane (TPU) films which do not require the necessity of curing. This business reported 2009 net income of $31 million and 2009 EBITDA of approximately $34 million. This transaction is expected to close during the second quarter of 2010, contingent upon customary closing conditions, including receipt of governmental approvals. Deutsche Bank Securities Inc. and Kirkland & Ellis LLP acted as advisors on this transaction.
The company will hold a conference call at 9:00 a.m. Central Time on Monday, March 1, 2010, during which Solutia executives will elaborate on the strategic fit and financial aspects of the transaction. A live webcast of the presentation, as well as a replay, will be available on the investors section of . The phone number for the call is 888-713-4214 (U.S.) or 617-213-4866 (International), and the pass code is 39848800. A replay of the event will be available through for two weeks or by calling 888-286-8010 (U.S.) or 617-801-6888 (International) and entering the pass code 11811324.
Read more here.

600450 Solutia Announces Agreement To Acquire Etimex Solar
Date: 2 March 2010
Source: Solutia

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