In a bid to raise cash and reduce reliance on petroleum based feedstock, Solutia Inc. is to hive off its largest unit - the nylon business to a New York-based private equity firm SK Capital Partners. With US$1.78 bln sales last year, Solutia is the world's second-largest producer of nylon 6,6. Solutia, the chemical maker that emerged from bankruptcy last year, will focus on specialty products. SK Capital will pay US$50 mln in cash at closing and US$1 mln a year for four years starting in 2011. Solutia also will receive a 2% equity stake in a new company formed to hold the assets. SK Capital will assume the unit's employee, pension and environmental liabilities.
SK Capital gains about 2,000 employees and 5 nylon units in Alvin, Texas; Decatur and Foley, Alabama; Greenwood, South Carolina; and Pensacola, Florida.
06-Apr-09 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}