Solutia to Buy Etimex Solar for $326 Million

U.S. specialty chemicals maker Solutia is set to buy closely held Etimex Solar, a maker of chemicals used in solar panels, for $326 million in cash, Wall Street Journal said. The deal is set to be announced on Monday, according to the paper.

Etimex Solar, a division of German plastics firm Etimex Holdings, makes a film that covers and weatherizes solar panels, the paper said. Solutia will look for a new financing package to help fund the Etimex deal. The firm may tap the high-yield market to raise new capital, the paper said.

Etimex had 2009 annual sales of around $67 million and earnings of $34 million, according to Solutia, the paper said. The Etimex deal would help Solutia, as majority of the company's $1.7 billion in annual sales currently come from the weak U.S. auto and construction industries, the daily said.

Solutia and Etimex Solar could not be immediately reached for comment by Reuters.