BASF To Buy Solvay's Polyamides Operations For Nearly $2B

European chemical giants BASF and Solvay this week announced an agreement for the sale of Solvay's polyamides business for more than $1.9 billion.

Under the deal, BASF will add Solvay's upstream and downstream polyamides operations in Europe, North America and Asia along with its Latin American downstream engineering plastics segment.

Those assets will be integrated into BASF's Performance Materials and Monomers divisions. BASF officials said the additions complement the company's engineering plastics operations, strengthen its nylon value chain and bolster its offerings for the transportation, construction, industrial and consumer segments.

The sale also expands BASF's access to growth markets in Asia and South America, although Solvay will retain its upstream intermediates and downstream textile polyamide business in Latin America.

The divested businesses employ about 2,400 people at 12 production sites, four R&D facilities and 10 support centers worldwide; about 1,300 of those employees are located in France.

The Belgian company called the deal a crucial step in its years-long shift to focus on specialty chemicals.

“Solvay’s planned divestment of polyamides marks a tipping point in the profound transformation journey we began four years ago," CEO Jean-Pierre Clamadieu said in a statement. "Successful completion of this transaction will further reinforce Solvay as a multi-specialty chemical group, delivering superior growth and sustainable value."