Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

Quick Facts

Editors Pick
Toyota Motor Corp. (TM, TYT.L) Thursday announced 1.1 percent decline in worldwide production for October, as there was a sharp decline in production of passenger cars in Japan. Production outside Japan improved 2.3 percent. In a separate announcement, the Japanese automaker said it will recall more... Computer and printer maker Hewlett-Packard Co. said Tuesday after the markets closed that its fourth quarter profit fell 6% from last year, as revenue declined 2%. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast. This organic and natural products company has experienced strong compounded annual growth over the last four fiscal years with its net sales growing 25% and adjusted income from continuing operations over 30%.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.