Solutia Reaches Agreement in Principle to Purchase Akzo Nobel's 50 Percent Stake in Flexsys Joint Venture
Friday December 15, 9:00 am ET
ST. LOUIS, Dec. 15, 2006 (PRIME NEWSWIRE) -- Solutia Inc., a leading manufacturer and provider of interlayers for laminated glass, aftermarket window films, specialty chemicals and an integrated family of nylon products, today announced it has reached an agreement in principle to purchase Akzo Nobel N.V.'s stake in Flexsys, the 50%/50% rubber chemicals joint venture between Akzo Nobel and Solutia, as well as Akzo Nobel's Crystex business in Japan. The proposed transaction is subject to completion of the definitive purchase agreement, approval by the United States Bankruptcy Court, receipt of required regulatory approvals and the fulfillment of other customary closing conditions. Solutia expects to fund the purchase through a combination of sources, including a portion of its new debtor-in-possession (DIP) financing package, the commitment for which Solutia announced today in a separate press release.
Formed in 1995, Flexsys is the world's leading supplier of chemicals to the rubber industry. With 2005 sales of approximately $600 million, Flexsys employs more than 1,000 people worldwide.
Flexsys products play an important role in the manufacture of tires and other rubber products such as belts, hoses, seals and footwear. These chemicals help cure and protect rubber, increase durability, lengthen product life, and provide color control and heat resistance.
Flexsys' headquarters are in Brussels, Belgium, and its products are manufactured at 15 facilities worldwide: eight in Europe, three in North America, two in South America and two in Asia. Flexsys also operates three technology centers, as well as more than 40 sales offices worldwide.
Source: Solutia Inc.
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