Solvay announces sale of its caprolactones business

Solvay has announced the sale of its caprolactones business to the Perstorp Group of Sweden following European Commission (EC) approval.

The EC confirmed that the move would not distort competition within the European Union because Perstorp had no prior caprolactone production facilities.

It also found no anti-competitive consequences to the limited vertical integration that would result within existing Perstorp activities.

Solvay, a Brussels-based pharmaceutical firm, announced the transaction last October and stated that it would be accounted for in the fourth-quarter 2007 group accounts.

The sale amounts to 200 million euros (150 million pounds) before taxes with the transaction generating a capital gain which has been recorded as non-recurring profit, the company reports.

Solvay’s caprolactones business unit serves clients across the world, including a manufacturing site located in Warrington ? a facility with 65 employees and which generated a turnover of about 60 million euros in 2006.

Perstorp has indicated that it will expand the plant’s capacity following its purchase of Solvay’s caprolactones division.

Solvay has also announced its financial results for its 2007 fiscal year, with the company reporting recording operating results for the period of 1.2 billion euros, a rise of nine per cent on the figure for 2006.