Home / Knowledge / News / Textiles / Solutia completes sale of Nylon Business
Solutia completes sale of Nylon Business
03
Jun '09
Solutia Inc., announced that it has completed the sale of its nylon business to an affiliate of SK Capital Partners II, L.P. "This sale completes Solutia's transformation into a pure-play performance materials and specialty chemicals company, with a portfolio of high-value products that hold world-leading positions," said Jeffry N. Quinn, chairman, president, and CEO of Solutia Inc.

Solutia's portfolio consists of three business segments - Saflex(R), Technical Specialties, and CPFilms(R) - each of which offer attractive margins and growth potential. These businesses are diversified geographically, with attractive long-term end-market characteristics.

Quinn added, "Solutia is well positioned to generate consistent financial returns and to further develop and enhance its position in the specialty chemicals sector. We will continue to seek value creation opportunities through the active management of our businesses."

SK Capital paid Solutia $50 million in cash (subject to a working capital adjustment) for the nylon assets. Solutia also received a two percent equity stake in the new company formed to hold substantially all of the assets of the nylon business. In addition Solutia will receive $4 million in deferred cash payments to be paid in annual $1 million installments beginning in 2011.

SK Capital also has secured replacement of $25 million of letters of credit associated with the nylon business, which has resulted in increased availability for Solutia under its credit agreements. The affiliate of SK Capital will assume substantially all of the liabilities of the nylon business, including employee and pension liabilities relating to the active employees of the business and environmental liabilities. Solutia used the proceeds of the nylon sale to pay down debt under its asset-based revolving credit facility.

Solutia Inc.

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search