Solvay Agrees to Sell Its European PVC Compound Business to OpenGate Capital

Solvay has signed an agreement to sell its polyvinyl chloride (PVC) compound business Benvic Europe to U.S. investment company OpenGate Capital, further improving the resilience of the Group’s portfolio.

Benvic Europe mixes PVC and additives, pigments and stabilizers to make innovative plastic compounds, which are processed to serve markets ranging from cars and aircrafts to medical applications and construction.

“This divestment is part of Solvay’s transformation to achieve higher growth and greater cash returns and helps to reduce its exposure to the economic cycle,” said Jacques van Rijckevorsel, member of Solvay’s Executive Committee. “OpenGate Capital’s long-term investment strategy will allow Benvic to seize growth opportunities in Europe.”

Benvic generated revenues of about €160 million in 2013. It has about 220 employees across Europe, with three PVC compounding production sites in France, Italy and Spain. The divestment will not affect Benvic’s current headcount.

The closing of this transaction is expected in the first half of 2014 and is subject to the approval of the anti-trust authorities.

About OpenGate Capital

OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate, build and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buy-outs, special situations and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.