Solvay Bids €3.4 Billion for France's Rhodia

Belgian chemicals and plastics maker Solvay said on Monday it will buy French chemicals company Rhodia, valuing the firm at €3.4 billion and ending a year-long hunt for a takeover deal.

Solvay, which sold its drugs unit to its U.S. partner Abbott Laboratories in September 2009 for €4.5 billion, said it would bid €31.60 per share for Rhodia in a deal that was unanimously recommended by Rhodia's board of directors.

The offer price constitutes a premium of 50% compared to the latest closing share price of Rhodia, giving an enterprise value of €6.6 billion and a recurring earnings before interest, tax, depreciation and amortization of 7.3 times.

Solvay said the acquisition of Rhodia will be earnings accretive from the first year and the deal will be fully financed by the company's cash resources.

CHEManager Spotlight

Standardization and Harmonization of Digital Chemical and Pharmaceutical Logistics
Creating Interfaces

Standardization and Harmonization of Digital Chemical and Pharmaceutical Logistics

CHEManager Spotlight is an exclusive event tailored for practitioners and decision-makers in the chemical industry. This part of our event series delves into the latest trends and innovations in logistics to streamline your operations and drive efficiency.

Free Virtual Event

Digital Validation
Transforming from Paper to Digital

Digital Validation

Our experts will delve into the recently released International Society for Pharmaceutical Engineering (ISPE) Good Practice Guide: Digital Validation