Solvay invested $5.5 billion to acquire U.S. composite manufacturer Cytec
Solvay, a chemical production giant headquartered in Brussels, Belgium, announced that it plans to acquire U.S. composite manufacturer Cytec Industries Inc. for $5.5 billion
servo motor drives ball screw to apply experimental force Composite materials account for two-thirds of Cytec's $2billion annual sales. The company focuses on aerospace composites, but Solvay's strong position in automotive OEMs and primary suppliers is expected to lead to new applications of light vehicle composites
Jean Pierre clam, CEO of Solvay, said in the draft that the proposed acquisition is the company's "unique opportunity to expand advanced light material products in the aerospace and automotive fields, while strengthening its expertise in mining chemicals."
Phil karig, general manager of mathelin Bay Associates LLC, a U.S. market consulting company, said that Solvay's offer was generous. "Undoubtedly, we see more opportunities brought by the development and expansion of Cytec's sales of composite materials and related systems in the global automotive market."
he also said that from a "green perspective", Cytec products can save fossil fuels by reducing the weight of aircraft and cars. The company's composite materials and thin film products also give Solvay more access to the renewable energy market, such as wind turbines and solar panels
cytec's polymer aerospace products include thermosetting and thermoplastic prepregs, preforms, and resin injection and transportation systems. In the automotive market, Cytec company produces prepreg blanks, resin system materials and adhesives. 4. Joints shall not have cracks, folds or other surface defects that affect performance, which are used for composite to composite, composite to metal and metal to metal bondingCytec also produces polymer additives, specializing in UV stabilizers. The company, located in Woodland Park, New Jersey, has 4600 employees worldwide. Its sales in 2014 were $2billion, up nearly 4% from 2013, more than half of which came from North America
Shane Fleming, CEO of Cytec, said that Solvay's expertise in special polymers and preparations will drive Cytec's further growth
Solvay acquired the company in cash at $75.25 per share. Cytec's share price was $58.39 the day before the acquisition was announced
cytec company 2 left-right rotation is optional and compact. In the first half of 2015, the sales volume basically remained at $1.02 billion. In the first half of the year, the company's profit fell by 25% to $97.2 million, mostly related to special projects, including pension funds and restructuring
in 2014, Cytec entered into a transaction with two German companies, cooperating with composite developer c-con holdings GmbH to promote carbon fiber reinforced plastics for vehicles, and cooperating with acrylic fiber manufacturer dralon GmbH to develop low-cost ways of carbon fiber productionCytec was founded in 1993, when it was spun off from American Cyanamid Co., an American industrial operation group, which was one of the top 100 manufacturing enterprises in the United States in the 1980s. American Cyanamid once owned many brands, such as Formica, centrum, Old Spice and pine sol. The rest of the dissolved company was sold to Pfizer, BASF and P & G
Solvay expects the deal to end in the fourth quarter
Solvay also announced the financial situation of the second quarter. The group's net sales were 2.68 million euros, an increase of 4.2% year-on-year
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