Solutia Inc.'s integrated nylon business is set to be acquired by SK Capital Partners, a transformational private investment firm, by April 30. The acquisition of downturn-afflicted Solutia's nylon business is said to generate superior value for SK Capital Partners' by combination of strategic repositioning, enhanced management and operational execution. Solutia will receive US$50 mln in cash and a two percent equity stake in a new company formed to hold substantially all of the assets of the nylon business. Solutia will also receive US$4 mln in deferred cash payments to be paid in annual US$1 mln installments beginning in 2011. SK Capital Partners II, L.P., is a New York-based private equity firm that is focused on the chemical, material and health care sectors.
Solutia Inc.'s integrated nylon business is a world leader in proprietary technologies that are central to the production of nylon, plastics and synthetic fibers, as well as agricultural products, animal feed and personal care products. The business has world scale integrated manufacturing capacity which gives it the ability to develop new products from its core technologies. SK Capital Partners Chief Investment Officer said, "In Solutia's integrated nylon business, we've found a company that we will be able to manage through tough economic times, improving operational execution to realize the benefits of future growth and new product development."
02-Apr-09 
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