News from Notch Consulting, Inc.

April 4, 2011

Solvay to acquire Rhodia for €3.4 billion in cash

Filed under: Silica — Notch @ 11:16 pm

Solvay has agreed to acquire Rhodia for €3.4 billion in cash. Solvay will launch a friendly cash offer for Rhodia at €31.60/share under the terms of the deal, a 50% premium over Rhodia’s closing price on April 1 and a 44% premium over Rhodia’s three-month average price. The offer represents a multiple of 7.3 times recurring Ebitda (Rebitda) and it has been recommended unanimously by Rhodia’s board. The deal has an enterprise value of €6.6 billion.

According to Solvay’s press release on the deal, the new group will have sales of EUR 12 billion and REBITDA of EUR 1.9 billion, with complementary businesses and 40% of sales arising from emerging markets.

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