Specialty chemical company Solutia will pay €240 million in cash to purchase Etimex Solar GmbH, a maker of weather-proofing films for photovoltaic solar panels, according to a release from Solutia.
St. Louis-based Solutia is expanding its range of encapsulants for solar panels with the purchase of Etimex Solar, said Solutia’s Chief Executive Officer Jeffry N. Quinn:
Renewable energy is an acknowledged source of long-term growth that fits well with Solutia’s businesses, and the combination of EVA and PVB encapsulant manufacturing capabilities will result in access to additional opportunities.
Etimex Solar, which is based in Dietenheim, Germany, is a subsidiary of Etimex Holding GmbH and is controlled by funds affiliated with private equity firm Alpha Gruppe.
Alpha Gruppe purchased Etimex in 2006 for €170 million in 2006, Bloomberg reports.
Solutia reported 2009 net income of $31 million.
Solutia, which emerged from more than four years of bankruptcy protection in 2008, will make the puchase with cash from its balance sheet and additional debt, according to the release. Deutsche Bank Securities and Kirkland & Ellis LLP were advisers for the transaction.
Etimex Solar is a supplier of ethylene vinyl acetate encapsulants for photovoltaic panels, a product line that Solutia officials said will compplement their polyvinyl butyral encapsulants.