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.”

The 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.

At the 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.