July 31 (Bloomberg) -- Solvay SA agreed to sell its sulphuric acid operation serving the mining industry to private equity firm CCMP Capitol Advisors LLC in a deal valued at $890 million.
The buyout firm is paying “just over” eight times adjusted earnings before interest, taxes, depreciation and amortization for the last 12 months through June, Solvay said in a statement today.
Chief Executive Officer Jean-Pierre Clamadieu is delivering a deal ahead of a year-end deadline to announce a buyer for the business, as he looks to enhance the Belgian company’s focus and profitability. Separately, Solvay reiterated today it expects high single-digit percentage earnings growth this year.
“Eco Services has a market leading position and generates stable cash flows, but its business profile differs from Solvay’s strategic ambitions,” said Clamadieu.
Sales in the second-quarter rose 2 percent to 2.64 billion euros, driven by higher volumes. Recurring earnings before interest, taxes, depreciation and amortization rose 10 percent to 485 million euros, buoyed by an acquisition to expand in oil-field chemicals that performed better than expectations, and advanced materials.
Shares of Solvay rose 0.4 percent to 124.15 euros at the open of trading in Brussels, where the company is based.
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