logo
Share SHARE
FONT-SIZE Plus   Neg

Solvay To Sell Its 50% Stake In Pipeline To Wienerberger For 172 Mln. Euros

Brussels-based chemicals group Solvay said Wednesday it has signed a binding agreement to sell its fifty percent stake in Pipeline to brick producer Wienerberger. Pipelife, a supplier of plastic pipe systems, is equally owned by Solvay and Wienerberger.

As per the terms, Solvay said it will receive 172 million euros in cash for the shares, including a special dividend of 10 million euros.

For Solvay, the deal represents an Enterprise Value of about 257 million euros for its 50% stake when taking into account assumption of liabilities, including pensions and other debt-like items, for about 85 million euros.

The closing of the deal is expected in the second quarter 2012, after obtaining the usual antitrust authorizations.

Solvay said it will use the proceeds from the sale to pursue its strategy of sustainable and profitable growth and focus on more strategic activities.

Vienna, Austria-based Pipeline is one of the world's leading suppliers of plastic pipe systems. The company employs about 2.600 employees in 27 countries and realized about 800 million euros in sales in 2011.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
French oil and gas giant Total SA (TTA.L, TTFNF.PK, TOT) reported Wednesday a profit for the second quarter that declined four percent from last year, reflecting a sales decline amid sharply lower oil prices. However, hydrocarbon production grew 12 percent from last year. The company's results were... Procter & Gamble Co., (PG) Tuesday announced the promotion of David Taylor to the role of Chief Executive Officer, as the consumer goods giant replaces Chief Executive A.G. Lafley for the second time. David Taylor, a 35-year-veteran and currently Group President of Global Beauty, Grooming and Health... Anadarko Petroleum reported a plunge in second-quarter profit, hurt by weak oil prices, partly offset by some derivative gains. However, its earnings topped Street estimates, driven by operational efficiencies and sales of higher-margin oil. Anadarko shares...
comments powered by Disqus
Follow RTT