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.
Wayne T. Smith, member of the Board of Executive Directors of BASF SE, said:
“With a broader portfolio, a stronger regional presence and improved supply reliability BASF will deliver significant benefits to our customers. 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.
In September 2017, BASF signed an agreement with Solvay on the acquisition of Solvay’s global polyamide business, subject to the approval of the relevant antitrust authorities. The E.U. Commission approved the acquisition of the polyamide business, subject to certain conditions, on January 18, 2019. These conditions required the sale of parts of the original transaction scope to a third party, specifically Solvay’s production plants and innovation competencies in the engineering plastics field in Europe. DOMO Chemicals, Leuna, Germany, was approved by the E.U. Commission as the buyer. The transaction between Solvay and DOMO Chemicals also closed on January 31, 2020.