Domo Chemicals acquiring Solvay’s European performance polyamides business
The 300 million euro deal includes engineering plastics operations in France and Poland; high-performance fibres in France; and polymer and intermediates operations in France, Spain, and Poland.
In a deal involving two Belgium-based material suppliers, Domo Chemicals is acquiring the European specialty nylon business of Solvay for 300 million euros (US$335 million).
Headquartered in Ghent, Domo is a fully integrated nylon 6 specialist, providing specialized engineering materials for the automotive, electrical, construction, industrial applications and consumer goods industries.
The deal, which is expected to close by the end of Q4 2019, includes engineering plastics operations in France and Poland; high-performance fibres in France; and polymer and intermediates operations in France, Spain, and Poland. It also involves a French joint venture between Leuna, Germany-based Domo and BASF for the production of nylon feedstock adipic acid.
In an Aug. 14 statement, Domo said that the acquisition of the PA 6,6 business will “significantly strengthen” its downstream nylon-based engineering materials business “and create a European leader with scale.”
“By integrating the complementary strengths of the diverse teams and talents of both companies, we will enhance our excellence toward our customers by building a unique and competitive integrated nylon solution provider driven by a strong innovation platform to push future sustainable growth,” Domo CEO Alex Segers said in the statement. “The strong reputation of the Technyl brand will perfectly complement the Domamid range of engineered and virgin polyamide resin grades and Econamid range of recycled polyamides.”
The agreement is a key step towards completing the divestment of Brussels-based Solvay’s remaining polyamides business to BASF. The assets need to be divested to a third party as part of the European Commission’s merger control clearance process.