Blackstone acquires Acetow from Solvay for €1bn

Blackstone invested via the buyout fund Blackstone Capital Partners VII, for which the GP raised $18bn of commitments at the end of last year.

The deal comes after an auction process that featured industrial and private bidders, such as Platinum Equity. According to various sources, Solvay had first offered the business to lycra maker Invista without reaching an agreement. The reason for the divestment is the Belgian group's wish to focus on high-tech materials.

When contacted by unquote", Blackstone declined to comment on the deal structure, but confirmed that the enterprise value amounted to approximately €1bn.

According to Reuters, the sale represents a 7x EBITDA multiple and will generate a capital gain of €150m after tax for Solvay, helping it reduce its debt level.

Acetow's management team will continue to be led by CEO Philippe Rosier, who took up the position last year. The deal is expected to be completed in the first half of 2017.

Company
Based in Freiburg, Germany, Acetow is a subsidiary of Belgian chemicals group Solvay, which currently reports €12.4bn in sales and a €2.3bn EBITDA. Acetow is specialised in the production of cellulose acetate tow, predominantly used in cigarette filters.

The business has five production sites in Germany, France, Russia, the US and Brazil. The group currently employs 1,300 people and reported €542m in sales last year, down 16% from the year before, according to website Process Worldwide.

People
Blackstone Group – Lionel Assant (head European private equity).

Advisers
Equity – Rothschild & Co (corporate finance); Natrium Capital (M&A); UBS (corporate finance). 

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