Dyneon LLC a wholly owned subsidiary of 3M have entered into a binding letter or intent to purchase Solvay Fluoropolymers a division of Solvay. Details of the sale have not been disclosed, although the deal is scheduled to be completed by the end of the year.
Solvay Fluoropolymers are based in North America and sell a line of polyvinylidene fluoride (PVDF) homopolymers and copolymers. PVDF materials are mainly used in wire/cable and chemical processing industries.
They have operations in Alabama, including a 50% share in Alventia LLC, a joint venture with Dyneon. Alventia producesVF2, a building block of PVDF. Under the agreement, Solvay employees would also be transferred to Dyneon.
The transaction was precipitated by Solvay’s need to divest the Alabama operation after its acquisition of Ausimont. Following this acquisition US and European regulatory bodies ordered the divestment. The addition of Ausimont almost doubles the size of Solvay’s fluorospecialties business, even after the divestiture of Alabama operation.
Dyneon are keen to grow there fluoropolymers business and this deal makes a good fit with their strategy.
For more information on PVDF click here.