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Share Name | Share Symbol | Market | Type |
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NYSE:CYT | NYSE | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 75.17 | 0.00 | 01:00:00 |
BRUSSELS—Belgium-based chemicals company Solvay SA on Wednesday said it is buying U.S. counterpart Cytec Industries Inc. for $5.5 billion to boost its product offering.
Solvay said it would pay $75.25 a share for Cytec and finance the deal by raising €1.5 billion ($1.66 billion) of capital and issuing €1 billion of hybrid instruments and senior debt.
The company said the acquisition would make it the world's second-largest company for aeronautical composite materials and reinforce its advanced materials and advanced formulations platforms, which produce chemicals used in the aerospace, automotive and mining sectors.
Cytec is based in New Jersey, has 4,600 employees and generated revenue of $2 billion last year, mostly in North America and the Europe, Middle East and Africa region.
"It is a unique opportunity for Solvay to boost its customer offerings in lightweighting with advanced materials in aerospace and automotive, as well as to strengthen its know-how with activities in mining chemicals," Solvay Chief Executive Jean-Pierre Clamadieu said.
Solvay said the per-share purchase price is 29% above Cytec's closing share price Tuesday and that the deal had been recommended unanimously by both companies' boards of directors.
Cytec's CEO Shane Fleming welcomed the deal. Solvay's "strategic focus is perfectly aligned with our businesses, while the technology synergies with their specialty polymers and formulations expertise should accelerate our growth," he said.
Solvay said it expected the deal to close in the fourth quarter.
News of the deal came as Solvay said it swung to a net profit of €143 million in the second quarter, compared with a €292 million loss a year earlier. The year-earlier result had been hit by an impairment charge on Solvay's discontinued European Chlorovinyls business.
Sales rose 4.2% to €2.68 billion, as currency fluctuations helped offset lower volumes and prices, Solvay said.
Write to Gabriele Steinhauser at gabriele.steinhauser@wsj.com
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