Domo Chemicals to acquire Solvay’s polyamide business

Alex Segers, CEO, Domo Chemicals. © Domo Chemicals

Domo Chemicals and Solvay have signed an agreement for Domo to acquire Solvay’s Performance Polyamides Business in Europe. This includes Engineering Plastics operations in France and Poland; High Performance Fibres in France; Polymer and Intermediates operations in France, Spain and Poland.

The agreement also involves a joint venture between BASF and Domo in France for the production of Adipic Acid. The Business comprises Production, Sales, Technical Support, R&D and Innovation services, which currently have a combined headcount of around 1,100 employees. The acquisition, which is subject to approval by the competent competition authorities, is expected to close by the end of the fourth quarter of 2019. The purchase price to be paid by Domo would amount to EUR 300 million.

Driving combined innovation

The acquisition of this leading PA 6.6 business will significantly strengthen Domo Chemicals’ downstream nylon-based engineering plastics business and create a European leader with scale, entering the market with a top position in PA6/6.6 in Europe.

Domo Chemicals signs agreement to acquire Solvay’s Performance Polyamides Business in Europe. © Domo Chemicals

The result is a backward integrated business with unique technology capabilities and a secured supply of key raw materials. There will be a strong focus on driving combined innovation, whilst accelerating future growth. Through the acquisition Domo Chemicals turnover will grow from EUR 900 million to EUR 1,600 million.

Major step forward

“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,” commented Alex Segers, CEO of Domo Chemicals.

Acquisition will significantly strengthen Domo Chemicals’ downstream nylon-based engineering materials business. © Domo Chemicals

“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. We are looking forward to offering employees from both companies great opportunities for personal and career development.”

www.domochemicals.com