Solutia acquires Southwall
By Solutia Inc.
By Solutia Inc.
Oct. 19, 2011 – Solutia, a performance materials and specialty chemicals company, and Southwall
Technologies have announced that they have signed a definitive agreement providing for
Solutia to acquire Southwall for $13.60
per share of Southwall common stock in cash. The transaction, which has
been approved by the boards of directors of both companies, has an
aggregate equity purchase price of approximately $113 million. The acquisition will be funded by Solutia from existing cash on hand.
"This acquisition positions Solutia as the world leader in advanced
sputtering technology, combining the industry's leading commercial
expertise with next-generation innovation capabilities to provide
advanced film solutions to the premium window film and electronics
markets," said Jeffry N. Quinn, chairman,
president and CEO of Solutia. "Our growth
strategy remains focused on enhancing our portfolio through synergistic
bolt-on acquisitions that allow Solutia to better serve high-growth
markets and support the success of our existing businesses. This is
just one component of our strategy to put our strong cash flow to work
to create value for our shareholders."
The acquisition will secure Solutia's access to Southwall's
proprietary XIR technology, a key base material for the company's
high-growth V-Kool premium aftermarket window films. In addition, the
acquisition adds state-of-the-art manufacturing capacity and proprietary
capabilities to support the fast-growing demand for high-tech films for
the electronics market and positions Solutia to provide a broader range
of product solutions. This includes a new product offering in which
transparent film is encapsulated between Saflex polyvinyl butyral
interlayers to form a protective barrier in laminated glass against the
harmful effects of the sun.
"We look forward to realizing the potential of Southwall's portfolio
of energy efficiency solutions as we combine our innovation in
sputtering technology with Solutia's commercial and market expertise,"
said Dennis Capovilla, president and CEO of Southwall Technologies. "Together we
will focus on the delivery of next-generation films to our customers
that achieve unmatched levels of solar performance and optical clarity."
In an effort to enhance communications, Solutia has created a supplemental video available on its website and YouTube channel that focuses on this announcement.