NEWS
MAY / JUN 2022
Solvay to split in two ?
Following on from the examples of other major chemicals companies , such as Bayer and DuPont , Solvay is reviewing plans to separate into two independent publicly traded companies . The process is expected to be completed in 2H 2023 .
The company said that the separation “ would establish two strong industry leaders that would benefit from the strategic and financial flexibility to focus on their distinctive business models , market and stakeholder priorities ”.
‘ EssentialCo ’ would comprise the single-technology businesses in the current Chemicals segment including Soda Ash , Peroxides , Silica and Coatis , plus the Special Chem business . Combined , they had approximately € 4.1 billion in net sales in 2021 .
‘ SpecialtyCo ’, with € 6.0 billion in net sales in 2021 , would comprise the Materials segment , including Specialty
Polymers , Composites and most of the Solutions segment , including Novecare , Technology Solutions , Aroma Performance and Oil & Gas .
The split would take place through a partial demerger of the existing structure , followed by a spin-off of the speciality activities to SpecialtyCo . Each , the company said , would be able , among other things , to :
• Intensify focus on its strategy and growth opportunities
• Prioritise resources to meet its unique business needs
• Apply differentiated operating models to better serve its customers
• Pursue distinct capital structures and capital allocation priorities SpecialtyCo would be committed to a strong investment-grade rating , with full financial flexibility at the time of separation to fund its growth plan , Solvay added . Its target date for carbon neutrality will be 2040 .
L ’ Oréal , Sanofi ’ s largest shareholder , has committed to a lock-up period of one year . Bpifrance and Rotthier himself have committed to two years for their stakes . EuroAPI is a major API supplier with a portfolio of about 200 APIs in its API Solutions and CDMO businesses , which account for about 75 % and 25 % of its turnover , respectively . It is active in both small and large molecules , and is claimed to be the seventh largest manufacturer in the global CDMO market based on 2020 figures . The company employs about 3,350 at six manufacturing sites and development centres in France , Germany , Hungary , Italy and the UK . Revenues were about € 893 million in 2021 and it is targeting € 1 billion and a core EBITDA margin of at least 14 % in 2022 . Sanofi originally announced its intention to spin out EuroAPI in February 2021 . On 17 March , the board voted unanimously to distribute 58 % of its share capital via an additional extraordinary dividend in kind .
IN BRIEF
Merger is completed Following negotiations begun in September 2021 , PharmaZell and Novasep have closed their merger under the majority ownership of Bridgepoint Group . Former PharmaZell CEO Dr Sylke Hassel is the CEO , while former Novasep CEO Michel Spagnol has joined the board of directors . The combined entity will have nearly € 500 million in revenues and ten production and R & D sites , seven of them in Europe .
Sasol invests in Holiferm Hamburg-based Sasol Chemicals has agreed to purchase the majority of the sophorolipids Holiferm will make at its UK facility , which is scheduled to begin operations in early 2023 , using them to make biosurfactants . It will also fund further R & D into sophorolipids , which are made through fermentation , using yeast to convert vegetable oils and glucose .
Cambrex facility ready Cambrex has completed a $ 50 million expansion it began in 2020 of its large-scale API facility at Charles City , Iowa . This has increased capacity by about 30 %, bringing the total to 100 m 3 of installed reactor capacity . It has multiple largescale manufacturing areas and can manufacture multiple products with complex chemical syntheses in parallel .
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