Solvay and Ineos Announce Start-Up of Inovyn
Solvay S.A., Brussels, Belgium, and Ineos announce the start-up of their joint venture Inovyn following European Commission approval. In May 2013 Ineos and Solvay announced the strategic intent to combine their respective European chlorvinyls activities in a proposed 50-50 Joint Venture.
The finalized terms of the Joint Venture agreement remain materially unchanged from those announced in June last year. Solvay received upon closing an upfront cash payment of €150 million - subject to customary adjustments such as actual working capital levels. In addition to contributing their entire European chlorovinyl business, Solvay has transferred liabilities estimated at EUR 260 million into the Joint Venture. In three years' time, Solvay will exit Inovyn and receive an additional, performance-based payment targeted to be EUR 280 million, with a minimum of EUR 95 million. Thereafter, Ineos will be the sole owner of the business.
Also effective July 1st, Solvay is buying BASF's 25% stake in its PVC Joint Venture SolVin. Solvay already contributed its vinyl activities, formerly part of SolVin, to Inovyn. Financial details are not disclosed. In addition, Solvay and Inovyn have agreed to continue supplying basic chemicals to the BASF site in Antwerp.
Headquartered in London, Inovyn has pro-forma sales of more than EUR 3 billion, with 4,300 employees and assets across 18 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK. Governance of the Joint Venture is equally split between the partners.
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