Solutia will sell its nylon business to New york equity firm
Solutia Inc. has agreed to sell its nylon business to a New York-based private equity firm, the Town and Country company said today.
At the closing of the sales, which is expected by the end of June, Solutia will receive $50 million in cash and a two percent equity stake in a new company formed by the private-equity firm SK Capital Partners II LP.
Solutia said it also will receive $4 million in deferred cash payments, paid annually in $1 million increments starting in 2011.
With the money from the sale, the company said, it plans to pay down some debt.
Solutia makes a range of products, including chemicals and window films free business card templates. On June 30, it announced it would review the nylon business and possibly sell it.
"We do not believe the operations, product profitability and long-term strategy of Integrated Nylon are aligned with our specialty businesses," Solutia said in a regulatory filing on Feb. 19.
The sale includes all five of the nylon business’ manufacturing plants in: Alvin, Texas; Decatur, Ala.; Foley, Ala.; Greenwood, S.C.; and Pensacola, Fla.