Pitch Best Large-Cap Corporate Deal M&A Awards Belgium 2019: Domo Chemicals – Solvay

Name of the deal:        Domo Chemicals acquires Solvay’s Performance Polyamides Business in Europe  
Date closed:                14th of August 2019
Published value:         €300 million    
Buyer:                           Domo Chemicals
Target:                         Solvay’s performance polyamides business    
Seller:                           Solvay    
M&A Database:          https://mena.nl/deal/11655

Visit MA-Awards.be for more information and availability of dinner tables or tickets. 

Pitch

Brief description deal / Deal outline:
In 2017, Solvay announced that it would be selling the polyamide division, primarily known for the production of nylon threads, for €1.6 billion to BASF in Germany. But that deal met with objections from the European Commission's competition watchdog.

In order to get the European green light, Solvay and BASF had to agree that two branches of Solvay were sold in France, Poland and Spain. At the same time, a joint venture was required between BASF and the buyer of the divested assets for the production of adipic acid in France.

Domo Chemicals takes over the Performance Polyamide activities of Solvay in France and acquires an interest in the new joint venture with BASF. The group also takes over sites in Poland, Spain, Germany and Italy. All in all, those activities are good for 1,100 employees.

Deal rationale:
Domo doubles in size and becomes one of the leaders in this business in Europe. 

What is the impact of this deal for the company?
Domo Chemicals doubles in size and seizes important opportunity after EU ruling regarding Solvay-BASF deal. 

What is the impact of this deal for the direct stakeholders?
Domo Chemicals is taking a quantum leap with the acquisition. The industrial company is doubling in size and has reached the 1.6 billion euro turnover mark.

What is the impact of this deal on the society?
Important step forward for a Belgian company with an impressive track record in the last 20 years.

Why does this deal deserve a nomination?
Track record of Jan De Clerck with Domo Chemicals has been outstanding in the last 20 years and the step that the company makes with this deal is also remarkable. A nomination of this deal resembles rewarding thorough and lasting Flemish entrepreneurship.

Comments Panel of judges
With the acquisition of the polyamide business of Solvay, Domo Chemicals has responded well to political developments that have affected Solvay. The European Commission only wanted to approve a sale of Solvay's polyamide activities to BASF if part of the activities were to be divested. The share will enable Domo Chemicals to make a major leap for growth, while Solvay meets the European Commission's concerns. The Panel of Judges sees responding to such exceptional opportunities as a textbook example of an "entrepreneurial acquisition".