Solutia Inc. has signed a deal to sell its nylon business to an affiliate of New York-based private equity firm SK Capital Partners II, L.P. While the agreement calls for Solutia to receive a two percent equity stake in the newly formed company, according to Solutia spokesman Dan Jenkins, “for all intents and purposes we will no longer be in the nylon business.”
announcement comes several months after Solutia sold its Wear-Dated nylon brand
and marketing programs to Mohawk. The sale to SK Capital includes Solutia’s
nylon business “management and employees, as well as the company’s five
manufacturing plants,” Solutia said.
closing of the sale, Solutia will receive $50 million in cash and $4 million in
deferred cash payments to be paid in annual $1 million installments beginning
in 2011. Additionally, the agreement includes a minimum level of working
capital. Solutia said it will use the sale proceeds to pay down debt under its
asset-based revolving credit facility.
Frederic Poses, formerly CEO of American Standard and COO of
AlliedSignal Inc., has been tapped to lead an experienced management team with
extensive industry experience in the integrated nylon business.
Solutia to sell nylon business; Poses to head new company
May 15, 2009