Carpet fiber seller Solutia Inc announced it and FMC Corporation have reached a definitive agreement to sell Astaris, their 50/50 specialty phosphates joint venture.
Under the terms of the agreement, Israel Chemicals Limited (ICL) will purchase substantially all of the assets of Astaris for $255 million. This transaction is subject to bankruptcy court approval, regulatory clearance and various other conditions and contingencies.
"The Astaris divestiture is the latest step forward in a key component of our reorganization strategy: building a portfolio of high-potential businesses to form the core of reorganized Solutia," said Jim Sullivan, senior vice president and chief financial officer, Solutia Inc. "While Astaris has benefited greatly from restructuring actions taken during 2004, it is a non- core asset to Solutia that is a better strategic fit for a company such as ICL."
Solutia will use the proceeds of the Astaris sale to partially pay down the term loan portion of its debtor-in-possession (DIP) financing. The sale will be liquidity neutral for Solutia; however, it will save the company interest costs associated with its DIP term loan.
Missouri based customer-focused phosphorus chemicals supplier Astaris is also sell phosphorus chemicals, phosphoric acid, and phosphate salts producing a complete line of phosphorus and derivative products in the industry. Astaris' focus is on quality and rapid response to customers' changing needs, hence our tag line "Quality Products, Exceptional Response."
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