Belgian chemical company Solvay has agreed to sell its Performance Polyamides Business in Europe to Domo Chemicals for approximately €300 million as part of the European Commission’s merger control clearance process.

The transaction also marks the divestment of Solvay’s remaining Polyamides business to BASF.

The assets acquired by Domo Chemicals involve Solvay’s Engineering Plastics operations in France and Poland; High Performance Fibers in France; Polymer and Intermediates operations in France, Spain & Poland.

In addition to creating a European leader with scale, the acquisition will strengthen Domo Chemicals’ downstream nylon-based engineering plastics business.

Domo Chemicals also expects to improve its turn over from €900 million to €1,600 million through the acquisition.

The deal also involves a stake in a newly created joint venture between BASF and Domo in Chalampé, France for Adipic Acid production.

The business, which currently employs around 1100 people, includes Production, Sales, Technical Support, R&D and Innovation services.

Alex Segers – CEO of Domo Chemicals said: “By integrating the complementary strengths of the diverse teams and talents of both companies, we will enhance our excellence towards our customers by building a unique and competitive integrated Nylon solution provider (6 and 6.6) driven by a strong innovation platform to push future sustainable growth.

“The strong reputation of the Technyl brand will perfectly complement DOMO’s wide DOMAMID range of engineered and virgin polyamide resin grades and ECONAMID range of recycled polyamides.”

Subject to approval by the competent competition authorities, the acquisition is expected to be completed by the end of Q4 2019.

Solvay, headquartered in Brussels, is an advanced materials and specialty chemicals company with around 24,500 employees in 61 countries. The firm reported 2018 net sales of €10.3 billion.

Headquartered in Germany, Domo Chemicals produces engineering materials for a wide range of markets, including the automotive, food, medical, pharmaceutical, chemicals and electronics industries. The company generated sales of over €900 million in 2018.

  Alex Segers, BASF, Domo Chemicals, Germany, Performance Polyamides Business, Solvay