Solvay, a Belgian-based international chemical group, has agreed to acquire Cytec Industries, Inc. for $5.5 billion, according to Solvay's press release.
The deal, which is expected to close in the fourth quarter of 2015, will allow Solvay to boost its offerings to its customers.
The acquisition of Cytec increases Solvay's scale and immediate customer intimacy in aerospace, according to Solvay's press release.
In addition, the buyout will also improve Solvay's profile of sustainability, as Cytec's offerings are addressing the planet's challenges.
Cytec strengthens Solvay's lightweighting solutions that reduce CO2 emissions, and provide a solution to the scarcity of resources through efficient and cleaner mining technologies.
Jean-Pierre Clamadieu, CEO of Solvay, said that the merger with Cytec will mark as a major step in upgrading Solvay's portfolio, according to Solvay's press release.
"It is a unique opportunity for Solvay to boost its customer offerings in lightweighting with advanced materials in aerospace and automotive, as well as to strengthen its know-how with activities in mining chemicals," he said.
Reuters adds that Clamadieu said in a conference call that Cytec's growth potential in the aerospace markets justifies the acquisition.
"The composite market in the aerospace sector is growing by about 10 percent per year," he told Reuters. "We are confident Cytec is well positioned to benefit from this growth."
In a separate press release by Cytec, Shane Fleming, CEO of Cytec, said that they are excited to join Solvay, which has a similar growth strategy to their business.
"This union will enhance our businesses' ability to drive their strategy of value creation through strengthening and leveraging our market and technology leadership positions in high growth end markets," he added.
Solvay would acquire 100 percent of Cytec's share capital for a price of $75.25 per share, according to the press release.
The price represents a 28.9 percent premium, compared to Cytec's closing price on July 28.
