BASF acquires Solvay’s Polyamide unit for €1.6bn

As it was already known, Solvay was searching for a buyer of its Polyamide division and investors were not surprised today as it was announced that the company has sold the asset to Germany-based BASF. BASF paid €1.6bn, corresponding to a 8x multiple on 2016 EBITDA and a fairly low price as compared to those usually paid in the chemical market. The acquiree, which will be integrated into BASF Performance Materials and Monomers divisions, ensures BASF a wide customer base in South America and Asia. Thanks to this transaction, BASF could start creating an important polyamide chemistry “Verbund” system. The latest significant takeover by BASF was Chemmetal, acquired in June 2016 for €2.8bn.

(Source: Handelsblatt)