Belgium: Cytec Fully Integrated Following Solvay Acquisition
Following the successful acquisition of Cytec by the Solvay Group in December 2015, Cytec is now fully integrated into its new parent company. Cytecs activities delivering cost synergies and solutions in advanced lightweighting materials for the transport industry with a specialty chemicals for mining will continue under the auspices of the Solvay Group.
Jean-Pierre Clamadieu, CEO of Solvay said:
Cytec represents a decisive milestone in Solvays transformation and opens up new horizons for growth and innovation. Solvay is now a leading provider of lightweighting materials for the aerospace industry. Thanks to extensive preparations, we will now embark on a swift and efficient integration of Cytecs businesses and its talented teams into Solvay and to accelerate value generation for our shareholders.
The integration has been in preparation since October 2016, with teams from both companies working to ease the transition. From the acquisition, Solvay will create two new Global Business Units (GBU). The first will consolidate Cytecs composite businesses Aerospace Materials and Industrial Materials. Bill Wood has been appointed President and it will become a part of the Advanced Materials segment.
The second GBU will combine Cytecs In Process Separation, Polymer Additives and Formulated Resins activities with Solvays phosphorus-based intermediates. Mike Radossich has been appointed President and it will become part of the Advanced Formulations segment.
Solvay expects to generate at least 100million in annual synergies in the three years following the acquisition, which will be accretive to adjusted earnings and free cash flow after the twelve months of the acquisition and to CFROI in the mid-term. The finance arrangements consist of the issuance of approximately 4.7 billion senior and hybrid bonds and the ongoing 1.5billion right issue.