Solutia sells nylon business to investment group
By David Hannon -- Purchasing, 4/30/2009 2:00:00 AM
After close to a year of shopping it around, Solutia Inc. in April entered agreed to sell its nylon business to an affiliate of SK Capital Partners II, a New York-based private equity firm that is focused on the chemical, material and health care sectors.
The sale includes all five of Solutia's nylon manufacturing plants in Alvin, Texas; Decatur, Ala.; Greenwood, S.C.; Pensacola, Fla.; and Foley, Ala.
In a statement, Jeffry N. Quinn, chairman, president, and CEO of Solutia said "The nylon sale is a positive step toward securing Solutia's future. We recognize that we are operating in an unprecedented economic environment and we remain focused on cost reduction, operational efficiency, cash flow generation, liquidity, and covenant compliance."
Solutia expects the deal to close in the second quarter and use the cash to pay down its debts.
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