PE firm Blackstone buys Solvay's cellulose acetate tow business

Private equity funds managed by Blackstone has acquired Solvay’s cellulose acetate tow business, Acetow. “The divestment of Acetow is another significant step in Solvay’s transformation towards a multi-specialty chemical group with a higher growth profile,” said Jean-Pierre Clamadieu, CEO of Solvay.

The transaction is based on an enterprise value of about € 1 billion, representing around 7 x EBITDA multiple. The net proceeds will contribute to the continued deleveraging of Solvay, which expects to generate a capital gain of around € 150 million after tax.

Completion of the transaction is expected in the first half of 2017 and is subject to the customary social procedures and approval by the relevant antitrust authorities.

Acetow is a cellulose acetate tow leader in filtration applications in consumer goods as well as in plastic and textile. Headquartered in Freiburg, Germany, Acetow is a worldwide producer with five production sites and has almost a century of experience in its core competence acetylation. Its innovation strategy is based on improving its core business and diversification.