BASF closed the acquisition of Solvay’s polyamide (PA 6.6) business. The transaction broadens BASF’s polyamide capabilities with innovative and well-known products such as Technyl®. This will allow BASF to support its customers with even better engineering plastics solutions, e.g., for autonomous driving and e-mobility. The transaction also enhances the company’s access to growth markets in Asia as well as in North and South America. Through the backward integration into the key raw material adiponitrile (ADN), BASF will now be present along the entire value chain for polyamide 6.6 and improve its supply reliability. The purchase price for the polyamide business acquired by BASF on a cash and debt-free basis amounts to €1.3 billion; sales generated in 2018 were about €1.0 billion. The business will be integrated into the Performance Materials and Monomers divisions of BASF.
“With a broader portfolio, a stronger regional presence and improved supply reliability BASF will deliver significant benefits to our customers,” said Wayne T. Smith, member of the Board of Executive Directors of BASF SE. “The acquisition stands for our strong commitment to the polyamide business globally.”
The transaction between Solvay and BASF includes eight production sites in Germany, France, China, India, South Korea, Brazil and Mexico as well as research and development centers and technical consultation centers in Asia, North and South America. In addition, it encompasses shares in two joint ventures (JV) in France: Solvay’s 50% share in the Butachimie JV with Invista to produce ADN and hexamethylenediamine (HMD) and a 51% share in the new Alsachimie JV between BASF and DOMO Chemicals to produce adipic acid.
At closing, approximately 700 Solvay employees join BASF. The Alsachimie JV between BASF and DOMO Chemicals in France employs approximately 650 employees, the Butachimie JV between BASF and Invista has approximately 400 employees.
