Rhodia Signs Agreement for the Sale of its Silicones Business to China National Bluestar Corporation
Oct 27, 2006
PARIS -- Rhodia announces the signature of an agreement for the sale of its Silicones business to China National BlueStar Corporation.
Rhodia's Silicones business generated sales of € 417 million in 2005 and has a total of 1,200 employees. It is mainly situated in Europe, with major production sites at Saint-Fons and Roussillon, in France.
This transaction is based on an enterprise value of € 400 million representing a multiple of slightly more than 7 times 2005 recurring EBITDA. The closing is expected in the next few months.
This divestment is in line with Rhodia's strategy to focus on businesses with global leadership positions and will contribute further to the Group's debt reduction.
Rhodia is a global specialty chemicals company recognized for its strong technology positions in the Performance Materials, Functional Chemicals and Organics and Services clusters. Partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets, Rhodia offers tailor-made solutions combining original molecules and technologies to respond to customers' needs. Rhodia subscribes to the principles of Sustainable Development communicating its commitments and performance openly with stakeholders. Rhodia generated sales of € 5 billion in 2005 and employs around 19,500 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange.
China National BlueStar (Group) Corporation is a large-scale state-owned enterprise, which is a specialized subsidiary of ChemChina Group Corporation. Headquartered in Beijing, being a leading company in China's chemical industry, BlueStar filled many technology blanks in the fields of new chemical materials, such as organic silicon, engineering plastics and TDI as well as special chemical products and realized its scale production. In 2005, the total asset of BlueStar exceeded RMB 30 billion and the sales revenue reached as much as RMB 30 billion. BlueStar holds stakes of four public listed companies including BlueStar Cleaning Co., BlueStar New Materials Co., BlueStar Petrochemicals Co., and Shenyang Chemicals Co.. BlueStar possesses the biggest organo-silicone production unit in China, which ranks top six in the world and occupies a major market share in China.
