Solvay has successfully completed the acquisition of Cytec, the world’s second largest player in aerospace composite materials.
Solvay says it will now immediately begin the integration of Cytec's businesses to deliver cost synergies and capture significant business opportunities in advanced lightweighting materials for the aerospace and automotive industries and in specialty chemicals for mining.
"Cytec represents a decisive milestone in Solvay's transformation and opens up new horizons for growth and innovation. Solvay is now a leading provider of lightweighting materials for the aerospace industry," said Jean-Pierre Clamadieu, CEO of Solvay.
"Thanks to extensive preparations, we will now embark on a swift and efficient integration of Cytec's businesses and its talented teams into Solvay and to accelerate value generation for our shareholders."
A large team of Solvay and Cytec personnel has been mobilized since early October to prepare detailed integration plans. Solvay will also create two new Global Business Units (GBU):
a GBU will group Cytec's composite businesses Aerospace Materials and Industrial Materials. Bill Wood is appointed President of this GBU, which will form part of the Advanced Materials segment;
a GBU will combine Cytec's In Process Separation, Polymer Additives and Formulated Resins activities with Solvay's phosphorus-based intermediates. Mike Radossich is appointed President of this GBU, which will form part of the Advanced Formulations segment.
Solvay says it “fully expects” to generate a minimum of 100 million euros in annual synergies within three years after the acquisition. The acquisition is expected to be accretive to adjusted earnings and free cash flow after the first year of the acquisition and to CFROI in the mid-term*.
Cytec will be fully consolidated within the Solvay Group as from Jan 1st, 2016.