Rhodia has announced the signature of an agreement for the sale of its Silicones business to China National BlueStar Corporation.
Rhodia’s Silicones business generated sales of €417 million in 2005 and has a total of 1,200 employees. It is mainly situated in Europe, with major production sites at Saint-Fons and Roussillon, in France.
This transaction is based on an enterprise value of €400 million representing a multiple of slightly more than 7 times 2005 recurring EBITDA. The closing is expected in the next few months.
This divestment is in line with Rhodia’s strategy to focus on businesses with global leadership positions and will contribute further to the Group’s debt reduction.