Solvay America, Inc. and Dyneon LLC (a wholly-owned subsidiary of 3M) have entered into a binding letter of intent for the sale of the North America - based Solvay Fluoropolymers, Inc. to Dyneon, subject to final regulatory approvals.
The financial details of the transaction will not be released.
Solvay Fluoropolymers sells a line of polyvinylidene fluoride (PVDF) homopolymers and copolymers and has manufacturing facilities in Decatur, Alabama. Those facilities include a 50% interest in Alventia LLC, a joint venture with Dyneon that produces VF2 - a building block of PVDF. The PVDF facility began operations during the 4th quarter of 2000. The transaction would involve the transfer of the company's employees to Dyneon.
PVDF materials are used primarily in the wire/cable and chemical processing industries.
The pending transaction reflects Dyneon's interest in growing its fluoropolymers business. Jim Gregory, President, Dyneon LLC, said, "The acquisition is a tangible demonstration of our commitment to the fluoropolymer industry. It sends a strong message that Dyneon is investing in the future, is prepared to provide global leadership in this industry."
The transaction was initiated in response to divestiture orders of U.S. and European regulatory authorities which arose from Solvay S.A.'s acquisition of Ausimont S.p.A. earlier this year. If approved by relevant regulatory authorities, the sale of Solvay Fluoropolymers, Inc. to Dyneon LLC is anticipated to close before the end of 2002.
The acquisition of Ausimont, after the divestiture of Solvay's Decatur facilities , approximately doubles the size of the Solvay Group's fluorospecialties business while expanding its product portfolio.
SOLVAY is an international chemical and pharmaceutical group with headquarters in Brussels. It employs some 31,400 people in 50 countries. In 2001 its consolidated sales amounted to EUR 8.7 billion generated by its four sectors of activity: Chemicals, Plastics, Processing and Pharmaceuticals. Solvay is listed on the Euronext 100 index of top European companies. Details are available at www.solvay.com.
Solvay America, Inc. is the U.S. holding company for most of the North American subsidiaries of the worldwide Solvay Group.
Dyneon LLC, a wholly-owned subsidiary of 3M, headquartered in Oakdale, Minnesota, USA, is one of the world's leading fluoropolymer producers with operations or representation in more than 50 countries.
3M is a $16 billion diversified technology company with leading positions in health care, safety, electronics, telecommunications, industrial, consumer and office, and other markets. Headquartered in St. Paul, Minnesota, USA, the company has operations in more than 60 countries and serves customers in nearly 200 countries. 3M, which marks its 100th anniversary this year, is one of the 30 stocks that make up the Dow Jones Industrial Average and also is a component of the Standard & Poor's 500 Index. For more information about 3M, go to www.3M.com.
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