Solutia to Acquire Southwall TechnologiesOctober 7th, 2011 | Category: Featured Content
Solutia is set to acquire glass and film products company Southwall Technologies for an “aggregate equity purchase price of about $113 million” according to a press release from the company.
“This acquisition positions Solutia as the world leader in advanced sputtering technology, combining the industry’s leading commercial expertise with next-generation innovation capabilities to provide advanced film solutions to the premium window film and electronics markets,” says Jeffry N. Quinn, CEO of Solutia. “Our growth strategy remains focused on enhancing our portfolio through synergistic bolt-on acquisitions that allow Solutia to better serve high-growth markets and support the success of our existing businesses. This is just one component of our strategy to put our strong cash flow to work to create value for our shareholders.”
Solutia will gain Southwall’s XIR® Technology, used in VKool films and all of the company’s manufacturing capabilities for window film production. Solutia will also now be offering a new product where film is “encapsulated between Saflex® polyvinyl butyral interlayers to form a protective barrier in laminated glass against the harmful effects of the sun.”
Solutia has announced that Southwall stockholders will receive $13.60/share in cash for all outstanding shares of Southwall common stock tendered in the offer and accepted for payment by Solutia, representing a 45 percent premium to the closing price per share of Southwall common stock on October 6.
A subsidiary of Solutia will be making a tender offer for the remaining shares of Southwall common stock no later than October 25.
“We look forward to realizing the potential of Southwall’s portfolio of energy efficiency solutions as we combine our innovation in sputtering technology with Solutia’s commercial and market expertise,” says Dennis Capovilla, CEO of Southwall Technologies. “Together we will focus on the delivery of next-generation films to our customers that achieve unmatched levels of solar performance and optical clarity.”